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‘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’, says Info Edge founder Sanjeev Bikhchandani.
Info Edge founder and veteran investor Sanjeev Bikhchandani.
Info Edge founder and veteran investor Sanjeev Bikhchandani has strongly defended India’s startup ecosystem, calling out what he termed as “untrue and unfounded” criticism directed at founders and venture capitalists. His remarks come in response to recent comments by brand consultant Suhel Seth, who described 80 per cent of Indian startups as “nothing but a racket”.
Taking to social media platform X, Bikhchandani rebuffed the sweeping allegations made by Seth during a TV appearance, in which the latter accused startup founders of enriching themselves even while their companies continued to bleed losses.
“Suhel has also called out Masa and SoftBank specifically. Perplexity informs me that Masa and SoftBank have invested over $15 billion in India. They are great believers in our country. We should be grateful – India is a capital-short country,” Bikhchandani wrote.
He further emphasized the importance of foreign investments, especially at a time when India has imposed restrictions on Chinese capital. “This is particularly useful when Chinese capital is not permitted,” he added.
Highlighting the resilience and dedication of Indian entrepreneurs, Bikhchandani said, “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.”
The Origin of the Debate
The debate on startups was sparked on April 3, when Union Commerce Minister Piyush Goyal questioned the long-term impact of India’s startup economy, suggesting that it was disproportionately focused on low-value gig work rather than deep-tech innovation.
“What are India’s startups of today — we are focussed on food delivery apps, turning unemployed youth into cheap labour so the rich can get their meals without moving out of their house,” Goyal remarked.
His comments drew sharp critism from the startup community. Goyal later described the backlash as “unfortunate”.
Amid the debate, Suhel Seth weighed in during a panel discussion on Republic TV, backing Goyal’s remarks and intensifying the criticism. “Eighty percent of startups in India are nothing but a racket,” Seth said. “When was the last time you paid yourself Rs 100 crore when your company was losing Rs 3,000 crore? These guys are doing it.”
A Resounding Pushback
Bikhchandani’s defence of startup founders has been welcomed by many in the entrepreneurial and investor communities. As one of the earliest champions of India’s internet economy—having backed companies like Zomato and PolicyBazaar — his voice carries significant weight.
At a time when funding has slowed, valuations are under pressure, and scrutiny around corporate governance has increased, Bikhchandani’s comments are a reminder of the risks founders take and the broader role startups play in driving innovation, employment, and economic transformation.
