Suhel Seth backs Piyush Goyal’s criticism of Indian startups, calls majority a ‘Racket’

Brand expert, businessman and columnist Suhel Seth has come out in support of Union Commerce Minister Piyush Goyal’s recent critique of Indian startups, claiming that most of them are run more like financial scams than genuine businesses. Seth alleged that nearly 80% of Indian startups are merely schemes to enrich founders rather than build innovative companies. He pointed out that many startup founders splurge on luxury cars and high-end homes while their ventures report massive financial losses. 

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Aligning with Goyal’s views, Seth emphasized the lack of truly groundbreaking innovation coming from India. He questioned India’s much-praised software sector, asking why the country hasn’t produced global tech giants like Facebook or Google. According to him, Indian startups are not creating game-changing products but are instead more focused on appearances and inflated valuations. 

Responding to Zepto CEO Aadit Palicha, who had defended startups by citing job creation and foreign investment, Seth dismissed the argument. He said startups shouldn’t be judged merely as employment providers, but rather on the real value they bring to the economy. He also criticized the founders who pay themselves enormous salaries despite their companies suffering huge losses, and suggested many are looking for a quick financial exit rather than long-term growth. 

Seth accused both startup founders and venture capitalists of colluding in what he called a ‘Racket’, using the example of Softbanks’s Masayoshi Son to highlight failed investments in India. He urged people to stop glorifying startups without  substance and warned against blindly celebrating them as revolutionary forces.