“The First Thing That These Startup Founders Do Is Buy Themselves Lamborghinis” Suhel Seth Backs Minister Goyal’s Views on Indian Startups

In a bold and controversial statement, brand consultant and columnist Suhel Seth has echoed Union Commerce Minister Piyush Goyal’s recent criticism of India’s startup ecosystem, claiming that “80% of startups in India are nothing but a racket.”

Seth’s remarks have added fuel to an ongoing debate about the sustainability, integrity, and true innovation within the Indian startup landscape.

“80% Startups Are a Racket,” Says Suhel Seth

Suhel Seth made the comments while defending Piyush Goyal’s call for more meaningful innovation in the Indian startup sector, particularly targeting food delivery and quick-commerce companies.

"Eighty percent of startups in India are nothing but a racket," Seth said on a Republic TV debate. "The first thing that these startup founders do is buy themselves Lamborghinis and homes in Amrita Shergil Bagh and big apartments."

In agreement, Seth stated that the majority of startups lack originality and function merely as funding-driven entities with no long-term vision. 

"I am in total agreement with Piyush Goyal. India, if it has to make a meaningful contribution, has to be innovative. Where are our innovations?" Seth, the founder and managing partner of the consultancy firm Counselage India, said. 

"We keep talking about our software prowess... have we produced a Facebook? No. Have we produced a Google? No. Have we produced anything that is innovative which is a global brand? The answer is no. So you can keep defending 'Oh, but we're doing great stuff,' and make statues of yourselves. Startups are not changing the world,” Seth said on a Republic TV debate.

However, Seth’s remarks didn’t go unchallenged. Sanjeev Bikhchandani, founder of Info Edge and one of India’s most respected entrepreneurs, swiftly responded, labelling Seth’s claims “completely untrue, unfounded, and non-specific”.

He stated that startup founders take enormous personal risks and deserve support, not ridicule.

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Suhel Seth Slams Zepto’s Aadit Palicha

Suhel Seth didn’t hold back when it came to Zepto cofounder Aadit Palicha either. After Palicha responded to Piyush Goyal’s remarks by defending young startup founders and highlighting the challenges of building something from scratch, Seth slammed him for taking offence.

Seth claimed that while he has no animosity against Zepto, Palicha's description of the business as a "miracle in Indian innovation" and its role in creating jobs and attracting foreign direct investment (FDI) were nonsensical.

"Are startups an employment exchange? No. We need the incremental value that startups will provide. And this is all a game of valuation. Which person in the world starts a business with a view to getting out of it? That's what most of our startup founders do. They want to make money fast and get out of the business," Seth said.

Seth further questioned the ethics of startup founders who draw massive salaries while their companies incur heavy losses. “When was the last time you paid yourself ₹100 crore when your company was losing ₹3,000 crore? These guys are doing it,” he remarked. He also clarified that he wasn’t painting all startups with the same brush. 

“So please save me this whole thing that startups are the next big thing after sliced bread. They aren’t,” he added. 

With billions in venture capital, hundreds of unicorns, and millions of jobs at stake, Seth’s comments have turned the spotlight back on the integrity, sustainability, and vision of India’s startup ecosystem.

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