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The redBus sale: A cautionary tale – Mint

by Mihir Dalal and Ashish K. Mishra Bangalore/Mumbai: If you are the founder of a start-up or work in a start-up, then this story is for you. If you hope to ever go down that path, keep reading. Because what happened at redBus—yes, redBus, the whale of a start-up success story of the last few years—could happen to you. To your company. To your people. And if and when that happens, then you need to know what to do. Or what not to. This cautionary tale, pieced together from interviews with multiple executives at redBus, investors and other people familiar with the matter, many of whom didn’t want to be named, begins in June 2013 when the bus ticketing website was acquired by the Ibibo Group, a subsidiary of South Africa-based media firm Naspers Ltd, for $135 million. Back then,…

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