Info Edge founder Sanjeev Bikhchandani has spoken out in favour of startups and has called out fellow founder and columnist Suhel Seth for his comment that 80 percent of the startups in India are "nothing but a racket".
Taking to X, the billionaire wrote that Sethi's allegations against startups, founders, venture capitalists, and private equity firms in general were "completely untrue, unfounded, and non-specific". "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. This is particularly useful when Chinese capital is not permitted," Bikhchandani said.
Defending founders, he added, "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 debate on startups and its contribution to the Indian economy started on April 3 when Union commerce minister Piyush Goyal put the startup economy under sharp scrutiny and questioned whether India was settling for low-paying gig jobs while China raced ahead in deep-tech innovation.
Goyal highlighted the stark contrast between the two countries, arguing that India’s startup space was too focused on food delivery and gig work. “What are India 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,” he said.
While the minister was severely criticised for his remarks -- a reaction that he said was "unfortunate" -- Seth appeared on Republic TV recently, where he not only backed Goyal's stand, but also accused founders of filling their pockets even as their company ran losses.
"Eighty percent startups in India are nothing but a racket," he 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."
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