India does not have a culture of excellence, says Cred's Kunal Shah

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Fintech firm Cred founder Kunal Shah has criticised India’s startup ecosystem for lacking a culture of excellence, saying many companies are built on comparisons rather than core innovation.

“We like to compare ourselves too early before we drive ourselves to excellence… Excellence is not a culture yet in India,” Shah said on May 22 at the Prosus’ Luminate event in Bengaluru.

Shah pointed out that while India has the potential to develop unique strengths, much of the innovation comes from wading through constraints.

“You will see many companies coming in that direction. We will have our own edge on how we approach the market,” he said.

Kunal Shah said he believes India does not have many companies being built with different principles. “For example, will India have the way China took off in the world by bringing the cost down on the same quality?”

He also added that the ability to adapt will be critical as emerging technologies like AI reshape industries such as BPO and IT services. “The same companies do not appear in the top 100 or 200 every five or seven years. The kind of people who will survive are those who can adapt to change and constantly innovate,” he further said.

Shah also spoke on the influence of one’s surroundings in shaping ambition. “Our ambition is a function of what we see around us,” he said, adding that without exposure to excellence, even aspiration can be limited.

The serial entrepreneur also questioned the country's tendency to idolise founders prematurely. “India has a problem of worshipping founders like gods; we do ‘visarjan’ when things go south,” he said.