Every business must keep innovating to achieve Product Market Fit (PMF) or else the business will be dead said Koreel Lahiri Investment Director of Media Development Investment Fund. "PMF makes business a living organism”

PMF is when a product meets the needs of a specific target market and is able to grow sustainably. It makes the company a living organism as it focuses to achieve repeatable and scalable model that drives demand, said Lahiri while addressing the ACJ-Bloomberg students at Asian College of Journalism, Chennai.

This assumes significance with the rise of new age companies in India. They find the gap in the market, innovate new product to fill in and constantly taking feedbacks to achieve PMF, said Lahiri.

New age companies refer to businesses that are innovative, modern and technology based and has the potential to disrupt traditional industries.

Traditional companies focus only on those areas in which they excel but new age companies make unique products by focusing on growth, marketing and sales. They keep improving their product till a point it becomes an integral part of customer’s life, said Lahiri.

He said barriers to entry is one of the most important factors of evaluation if a product has achieved PMF. “No other business will be able to do what I am doing in my business” said Lahiri while explaining the concept.

Other factors of evaluation include team performance, market adoption, product completeness and valuation of the company.