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Sanjeev Bikhchandani Rebukes Suhel Seth’s “Startup Racket” Remark, Backs Founders Amid Ongoing Debate

New Delhi | April 8, 2025:
Billionaire entrepreneur and Info Edge founder Sanjeev Bikhchandani has come out strongly in defense of India’s startup ecosystem after columnist and brand consultant Suhel Seth sparked controversy by calling 80% of Indian startups “a racket”.

The remarks, made during a recent Republic TV appearance, added fuel to an ongoing debate that began when Union Commerce Minister Piyush Goyal questioned the nature and impact of India’s startup boom.


Startup Founders Are Heroes, Not Abusers: Sanjeev Bikhchandani

In a post shared on X, Bikhchandani wrote:

“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.”

He also criticized the “unfounded and non-specific” nature of Suhel Seth’s sweeping claims, urging people to recognize the risk-taking spirit and contributions of Indian entrepreneurs.


SoftBank and Masa Deserve Respect, Not Blame

Suhel Seth had particularly called out SoftBank and its head Masayoshi Son for backing unprofitable companies. In response, Bikhchandani defended the Japanese investment giant, saying:

“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.”


The Controversial Remarks That Sparked It All

The startup debate reignited last week when Commerce Minister Piyush Goyal questioned whether India was settling for low-skilled gig jobs while China advanced in deep-tech innovation.

Goyal commented:

“We are focussed on food delivery apps, turning unemployed youth into cheap labour so the rich can get their meals without moving.”

His remarks drew sharp criticism from tech entrepreneurs, founders, and startup supporters across the country. Goyal later called the backlash “unfortunate”, but stood by his broader point.


Suhel Seth Doubles Down: ‘Startups Are a Racket’

Suhel Seth, speaking on television, supported the minister’s stance and added:

“Eighty percent startups in India are nothing but a racket. When was the last time you paid yourself ₹100 crore while your company was losing ₹3,000 crore? These guys are doing it.”

His accusations implied that many startup founders enrich themselves even while their companies hemorrhage investor money — a charge that many industry veterans, including Bikhchandani, say is an unfair generalization.


A Broader Discussion on India’s Startup Future

This ongoing debate reflects deeper concerns about the direction of India’s booming startup ecosystem. While India has produced over 110 unicorns and attracted billions in VC funding, critics argue that too many ventures lack innovation or sustainability.

Yet, defenders like Bikhchandani emphasize that failure is an accepted part of the entrepreneurial journey, and that India’s young founders and investors deserve credit for creating jobs, solutions, and global tech leaders.


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