Startups Focus On Wealth Creation, Growth: Experts

As India’s startup ecosystem continues to evolve, the conversation around wealth creation is also shifting. Entrepreneurs are no longer chasing inflated valuations but are focusing on sustainable growth, profitability, and long-term value. Industry leaders recently gathered to explore the challenges and opportunities faced by India’s startups, particularly in Bharat—the vast non-urban regions of the country.

Challenging Times for Startups

Opening the discussion, Dhruv Dhanraj Bahl, Founder and Managing Partner of Eternal Capital, provided insights into the changing venture capital landscape. “In 2021, USD 35 billion went into early-stage deals, while last year saw only USD 8 billion. This year, we're on track to close at around USD 10 billion,” he noted. Although the numbers indicate recovery, Bahl explained that the days of rapid, unchecked growth are fading, with investors now prioritising “right pricing” and sustainable growth. This raises concerns about how such shifts might affect future wealth creation for startups and their employees.

The Evolution of Entrepreneurship

Deepanshu Manchanda, Founder and CEO of Zappfresh, spoke about his experience in building a sustainable business rather than pursuing aggressive growth. “For me, it’s always been about creating something meaningful,” Manchanda shared, explaining his steady and cautious approach to scaling his company, which operates in the fresh meat industry.

Abhijeet Anand, Co-founder of abCoffee, is working to redefine India’s coffee culture. He highlighted his mission to make coffee more accessible to a wider audience, noting that, “For too long, coffee has been considered a luxury product. We want to change that and democratise it for everyone.”

Opportunities In Bharat

The discussion also touched on the potential of Bharat’s growing markets. Vaibhav Anant, Founder of Bambrew, pointed out the changing attitudes toward Indian companies. “People are now proud to work with Indian companies, and we’re seeing better talent retention in Bharat,” Anant observed, reflecting on the increased opportunities in smaller cities and towns.

Anish Popli, Founder and CEO of ProcMart, shared his challenges in expanding his B2B commerce platform into Bharat. “It took time to convince people to join startups in smaller towns, but now there’s growing acceptance,” Popli explained, emphasising the increasing acceptance of the startup culture outside major cities.

Wealth Creation and ESOPs

The role of Employee Stock Ownership Plans (ESOPs) in wealth creation was a key focus of the conversation. Manchanda highlighted that while ESOPs are important, they should not be the sole incentive for employees. “People need to believe in the company’s vision. ESOPs will unlock value over time, but the commitment to the journey is crucial,” he said.

Popli echoed these sentiments, advocating for more frequent liquidity events to unlock ESOP value. “Waiting until an IPO to liquidate ESOPs doesn’t make sense. Companies should offer earlier opportunities to keep employees motivated,” he argued.

As the session drew to a close, the panel emphasised the importance of patient capital, ongoing innovation, and creating long-term value for startups. Bahl stressed that capital should bring value beyond mere financial investment, supporting sustainable growth rather than quick returns. “There is plenty of capital available, but what really matters is the value it brings to the table,” he remarked.

These insights were shared at Wealth Creation: Shaping Bharat’s Startup Culture, organised by Bw Businessworld where industry leaders discussed the future of India’s startup ecosystem and the vast opportunities that Bharat offers to entrepreneurs. The session was chaired by Dhruv Dhanraj Bahl, Founder and Managing Partner of Eternal Capital.

Kapil Yadav

BW Reporters The author is a trainee correspondent with BW Businessworld