Sanjeev Bikhchandani hits back at startup critics: 'Founders take a risk'

Sanjeev Bikhchandani, founder of Info Edge, has come to the defence of India's startup ecosystem following criticisms from brand consultant Suhel Seth. Seth recently labelled 80% of Indian startups as "nothing but a racket," a claim Bikhchandani dismissed as "untrue and unfounded."

He accused Seth of making sweeping allegations during a TV appearance, where Seth suggested that startup founders enrich themselves while their companies incur losses.

Bikhchandani highlighted the significant investments made by Masa Son and SoftBank in India, amounting to over $15 billion. "Suhel has also called out Masa and SoftBank specifically. They are great believers in our country. We should be grateful—India is a capital-short country," Bikhchandani remarked, underscoring the importance of foreign capital, especially with restrictions on Chinese investments. "This is particularly useful when Chinese capital is not permitted," he added.

Bikhchandani praised the resilience of Indian entrepreneurs, stating, "Startup founders take a risk with their careers and their future to do what they do. And they struggle and they tighten their belts and they don’t give up. They are heroes and they should be respected and lionised, not abused." His comments came against the backdrop of ongoing debates about the sustainability and innovation within India's startup sector.

The discourse around startups intensified on April 3 when Union Commerce Minister Piyush Goyal questioned the focus of Indian startups on low-value gig work rather than deep-tech innovation. Goyal urged startups to "go global and think big," noting the presence of only about 1,000 deep-tech startups as a "disturbing sign." The minister's remarks sparked a broader conversation about whether Indian startups should prioritise short-term wealth creation or aim for international expansion.

Suhel Seth supported Goyal's concerns, further criticising the startup ecosystem for lacking global brands. "I am in total agreement with Piyush Goyal. India, if it has to make a meaningful contribution, has to be innovative. Where are our innovations?" Seth asked. He pointed out the absence of Indian companies producing major global platforms like Facebook or Google, asserting that startups are not making world-changing innovations.

Seth also challenged Zepto co-founder Aadit Palicha's claims about the company's role in job creation and foreign direct investment. Despite referring to Zepto as a "miracle in Indian innovation," Seth argued that such assertions were illogical without substantial evidence of global contributions. The debate highlights ongoing concerns over the long-term impact and innovation potential of India's startup economy.