Snapdeal cofounder calls for rise of ‘Indicorns’—resilient startups built on real business fundamentals
New Delhi, May 4, 2025 — In a sharp critique of the valuation-driven narrative dominating India’s startup ecosystem, Snapdeal and Titan Capital cofounder Kunal Bahl has called on entrepreneurs, investors, and media to pivot their focus towards building sustainable, profit-generating companies. Speaking at the TiE Delhi-NCR India Internet Day (iDay) event, Bahl advocated for a new breed of startups he dubbed “Indicorns”—firms that prioritize financial resilience and long-term value over billion-dollar valuations.
“Valuation doesn’t always represent progress,” Bahl told the audience. “You can have a billion-dollar tag and no profits. Meanwhile, others are quietly building real value. They deserve recognition too.”
The Rise of Indicorns: Profitability Over Prestige
Bahl’s remarks strike a timely chord as India’s startup ecosystem grapples with a funding winter that began in late 2022, forcing several high-flying ventures to scale back, lay off employees, or shutter operations altogether. According to a report by Tracxn, startup funding in India dropped by over 60% year-on-year in 2023, reflecting a global pullback in venture capital.
“Post-2017, the media and investors began focusing only on flashy valuations and big bets,” Bahl said. “But what we need now are more Indicorns—startups that grow sustainably, often with little or no external funding, and that prioritize strong revenue models.”
This sentiment marks a departure from the unicorn craze that defined the past decade, where startups achieving a $1 billion valuation were often celebrated regardless of their path to profitability. India is currently home to over 110 unicorns, according to Invest India, but few of them have demonstrated sustained profitability.
Legacy IT Giants as Role Models
Pointing to established Indian IT companies like Infosys, Wipro, and Tata Consultancy Services (TCS), Bahl emphasized that enduring businesses are built on patience, discipline, and consistent execution.
“These firms scaled steadily, backed by real demand and patient capital. They focused on profits early and stuck to fundamentals,” Bahl noted.
The contrast is especially stark when compared to startups that grew rapidly through aggressive cash burn, often banking on future growth rather than current income. For example, online education firm BYJU’S, once India’s most valuable startup, has faced mounting scrutiny over financial disclosures, delayed audits, and an unsustainable expansion strategy.
Why This Matters for India’s Startup Future
Bahl’s call to action resonates beyond financial metrics. A startup ecosystem overly focused on valuations can distort incentives, encourage risky behavior, and overshadow companies that are solving real problems with efficient models.
“Most founders I meet don’t want to raise money—they do it because they have to,” Bahl said. “Let’s not overlook the ones building quietly and profitably.”
This reflects a growing realization among stakeholders that profitability is not just a financial metric—it’s a marker of customer value, operational efficiency, and long-term viability.
Investors and Founders Responding to the Shift
The tide may already be turning. A recent Bain & Company report on India’s venture capital landscape found that investors are now placing greater emphasis on unit economics, customer retention, and break-even timelines rather than just user growth and gross merchandise value.
Several new-age startups have embraced this leaner mindset. SaaS (Software as a Service) firm Zoho, bootstrapped and profitable since inception, recently surpassed $1 billion in annual revenue without ever raising external capital—an example often cited by those advocating for the Indicorn model.
“Profitability gives us control over our destiny,” said Sridhar Vembu, Zoho’s founder and CEO, in an earlier interview with The Economic Times. “It allows us to focus on customers, not just investors.”
Conclusion: A Rethink of Startup Success Metrics
Kunal Bahl’s message is a timely reminder that in the pursuit of innovation and scale, startups must not lose sight of sustainability. As India looks to cement its place as a global tech hub, fostering a culture that rewards long-term performance over short-term hype could unlock deeper value for the economy, entrepreneurs, and society at large.
The emergence of Indicorns signals a maturing ecosystem—one that prizes substance over spectacle. For founders building in today’s uncertain climate, the road to lasting impact may lie not in chasing billion-dollar headlines, but in crafting businesses that endure.
Last Updated on: Monday, May 5, 2025 9:35 pm by Kavya | Published by: Kavya on Monday, May 5, 2025 9:35 pm | News Categories: News
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