Startup Pioneer Sanjeev Bikhchandani On Why Customer Money Trumps Investor Funds

Startup Pioneer Sanjeev Bikhchandani On Why Customer Money Trumps Investor Funds

SUMMARY

Bikhchandani is the cofounder of Info Edge that owns Naukri, Jeevansathi, 99acres, and Shiksha

The Padma Shri awardee has years of experience in running startups and investing in new businesses too

The Info Edge cofounder said that startups make a mistake by chasing investors instead of customers

A veteran venture capitalist and one of the pioneers of the Indian startup ecosystem, Sanjeev Bikhchandani was experimenting with internet services long before the technology became the part of everyday Indian lives. The cofounder of Info Edge Limited which owns and operates Naukri, Jeevansathi, 99acres, and Shiksha recently won the Padma Award for his years of contribution to the tech ecosystem in Indian.

Speaking at a recent industry event, Bikhchandani said, “What India did do right was the massive investment by the government in higher education during the 50s and the 60s. The benefits of which we reaped with a good number of engineers and economists by the 80s and 90s. This coincided with the opening up of the global economy, thereby creating a conducive environment for the IT industry and startups,” said Bikhchandani.

India now stands third in the world when it comes to the number of startup unicorns after the USA and China, but what will it take for Indian startups to stand up to the heavyweights from Silicon Valley on a regular basis?

Bikhchandani believes it’s down to talent — individuals are the key asset for any startup, he said, irrespective of geographical boundaries. “Talent coupled with the right markets and regulatory support will help the startup industry in India.”

While he does believe that the government is responsible for creating and enabling the framework for the startup ecosystem, he also added, “The thing about governments across the world is that they are not naturally prone to taking risks. If there is a big blowout in the fund or if something bad happens in the market how can a government interfere and what individual officials can do needs to be laid out if the government commits.”

As a takeaway for founders, Bikhchandani said,

“The thing about startups today is that they are chasing investors, but I believe that customer money is better than investor money. The reason being that if a customer buys from you, he buys it at a price which is higher than the cost. This not only helps you recover your cost and move faster towards profitability but also reflects the customer confidence in the product.”

Bikhchandani further stated that if a business can bring the customer money, the investor money will certainly flow in but if they take the investor money first there is no guarantee of customer money. He added, “It is always better to raise money when investors call you and not when you have to go to them for money.”

On whether he looks for commercial viability in a startup before investing, the Info Edge founder said, “You do a startup because you believe in an idea and that it can work. You don’t do a startup to make money. You think about the next month, the next quarter and how will you manage the salaries.”

Step up your startup journey with BHASKAR! From resources to networking, BHASKAR connects Indian innovators with everything they need to succeed. Join today to access a platform built for innovation, growth, and community.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Startup Pioneer Sanjeev Bikhchandani On Why Customer Money Trumps Investor Funds-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Startup Pioneer Sanjeev Bikhchandani On Why Customer Money Trumps Investor Funds-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Startup Pioneer Sanjeev Bikhchandani On Why Customer Money Trumps Investor Funds-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Startup Pioneer Sanjeev Bikhchandani On Why Customer Money Trumps Investor Funds-Inc42 Media
Startup Pioneer Sanjeev Bikhchandani On Why Customer Money Trumps Investor Funds-Inc42 Media
You’re in Good company