Startups need to chase profit, financial viability: Info Edge's Bikhchandani

As the co-founder and executive vice chairman of Info Edge, which runs several web portals including Naukri.com, Jeevansathi.com, 99Acres.com and Shiksha.com, Sanjeev Bikhchandani,  is counted as the pioneer of internet startups in India. He is also an ace investor with investments in over 100 startups including fintech firm Policybazaar and foodtech major Zomato. Recent controversies and challenges faced by high-profile startups like Paytm and Byju’s have sparked discussions about the entrepreneurship landscape in India. Speaking to DH’s Gyanendra Keshri Bikhchandani throws light on issues and challenges facing the Indian startup ecosystem and the future outlook. Edited excerpts:  

Two high-profile startups Paytm and Byju’s are in serious trouble. These firms were touted as the beacons of India’s growing unicorn ecosystem. Do you think the recent developments in these firms have dented India’s startup landscape?

Not really. Each startup is individual and separate. You have to access and deal with it on a case by case basis. I am not in a position to comment on Paytm and Byju’s simply because I don’t know the facts. But let me tell you, the Indian startup ecosystem is large. Governance issues will happen. But I guess 95 to 98 per cent of founders and startups are doing fine on compliance. So I don’t see any systemic risk.

After reaching a certain level several of the Indian startups seem to be faltering. There have been several examples of tussles between founders and investors. If we compare it with countries like the US, where several startups have transformed into giant tech firms. Do you see sustainability issues in  India’s startup landscape?

In general, in the US the companies are larger because the market is larger. The Indian market is large but not that large yet when you compare it with the US. However, we are growing faster. Our startups and companies will grow in line with the market.

Majority of the startups are not able to make profit. Does it pose sustainability risk?

I think you need to focus on getting to profit, getting to viability, getting to scale. In the interim there may be some losses. That’s fine. But you need to focus on sound economics. For sustaining a business, you have to chase profit; you have to chase revenue; you have to chase financial viability. That’s very important.

How do you see the funding environment? Has it dried up?

Funding is available for good companies. It will be available. There is never a shortage of funding for good companies. As I said, startups have to chase profit, revenue and financial viability. If you do these, funding will be there. For good companies there is no problem in funding.

You and your company have invested in several startups. How are they doing?

We have invested in more than 100 startups. Some of them are doing very well, some have failed, some are work in progress. This is typical in investments. The company is growing. The company keeps on investing. We invest in new businesses, and we are clearly on a growth path.

You are on the organising committee of ‘Startup Mahakumbh’. What is the idea behind the event and how will it support startups?

Startup Mahakumbh is a confluence of startups. It will be like an international startup fair. The event will be organised at Bharat Mandapam in New Delhi. It will be a three-day event held from March 18 to 20. These three days will be a big showcase and reflection of India’s innovating and growing startup ecosystem and will bring the right mindsets, ideas and energies in one place. It will provide the right platform to showcase the pace at which the startup ecosystem in India is evolving.