Piyush Goyal vs consumer startups; Sachin Bansal on Flipkart exit
Founders have defended India’s consumer internet ecosystem against remarks by union minister Piyush Goyal. This and more in today’s ETtech Top 5.
Also in this letter:
■ Amitabh Kant at Startup Mahakumbh
■ IT sector’s Trump headwinds
■ Wikimedia’s India setback
Commerce and industry minister Piyush Goyal stirred controversy while addressing the Startup Mahakumbh 2025, with remarks that many saw as dismissive of India’s startup ecosystem.
What Goyal said: “We are focused on food delivery apps,” he noted, “turning unemployed youths into cheap labour, so the rich can get their meals without moving out of their house.” He urged Indian startups to pivot towards high-tech sectors like semiconductors, robotics, AI, and advanced manufacturing.
His rhetorical question, "Are we going to be happy being delivery boys and girls?" sparked strong backlash.
Also Read: Indian venture capitalists need to pivot to a new model of investing
Responses: Leaders across the startup ecosystem pushed back.
Aadit Palicha: The Zepto CEO defended the startup community, saying over 1.5 lakh people earn livelihoods through Zepto, which has paid over Rs 1,000 crore in taxes in just 3.5 years.
“If that isn't a miracle in Indian innovation, I honestly don't know what is,” he said. Palicha also argued that India lacks large AI models because it hasn’t built “great” internet companies, and urged the government and investors to stop stifling them.
Mohandas Pai: The former Infosys CFO asked Goyal to not “belittle” startups. He pointed out that China invested $845 billion between 2014 and 2024, compared to India’s $160 billion.
“Why is Minister @PiyushGoyal @AshwiniVaishnaw not helping solve these issues?” he questioned.
Anupam Mittal: Shaadi.com founder and Shark Tank India judge praised Indian deep-tech startups in AI, space-tech, and material science, but flagged a major gap in capital and growth support.
Also Read: Tech startup funding rose 23% in 2024, deeptech saw 78% boost: Nasscom report
Sachin Bansal has revealed that he was deeply unhappy after selling his entire stake in ecommerce giant Flipkart in 2018, describing the exit as unplanned.
Quote, unquote: “(Paytm CEO) Vijay and I talked extensively after I exited Flipkart, and he jokingly said that you are the most unhappy billionaire I’ve ever seen. I was extremely unhappy after exiting because it was not something I had planned… it just happened,” Sachin said at the Startup Mahakumbh in New Delhi.
In 2018, US retail giant Walmart acquired a majority stake in Flipkart. Sachin earned around $1 billion after fully exiting the company, while cofounder Binny Bansal only partially sold his stake.
Souring ties: The unrelated Bansals cofounded Flipkart in 2007 as an online bookstore. Sachin served as CEO for nine years, before moving into the chairman role in January 2016, with Binny taking over daily operations.
Following Walmart’s entry, reports surfaced of strategic disagreements between Sachin and the company board, which ultimately led to his exit. He later founded Navi, a financial services company.
On RBI: At the same event, Bansal also took aim at the Reserve Bank of India. “In fintech, the regulator becomes an important stakeholder. Sometimes depending on the situation, they (regulator) can become the most important stakeholder in the equation at the detriment of customers or employees,” he said during a panel discussion.
Technocrat Amitabh Kant on Friday urged Indian startups to lead the global technological landscape, rather than simply imitating the West.
Charging ahead: Speaking at the Startup Mahakumbh in New Delhi, the former Niti Aayog chief executive said India must build sovereign frontier models using indigenous datasets to eliminate the inherent biases found in foreign models.
“This is the age of huge disruption. India must demonstrate that we are willing to make a quantum jump forward in deeptech, and that we are able to disrupt sectors like space, battery, drones and green technology,” he said.
More for less: Citing the Indian Space Research Organisation (Isro) as a benchmark, Kant encouraged startups to focus on cost-effective innovation. “We must achieve more for less, just as Isro has done in space. If it can launch missions, reach space, and land on the moon at a fraction of the cost of a Hollywood movie, startups can do the same,” he said.
Also Read:Fintech self-regulatory organisations should have broad representation: Amitabh Kant
India’s $280 billion software services industry may suffer a blow as reciprocal tariffs proposed by the Trump administration threaten to curb US tech spending.
Explained: The tariffs will dampen demand for IT services rather than disrupt supply, said Akash Verma, an executive at research firm Everest Group. Key US sectors such as manufacturing, electronics, and retail are likely to face rising costs, prompting cuts in non-essential IT spending.
After a sluggish FY24, the demand was expected to rebound in the first two quarters of FY25. However, US government actions may delay this recovery, with IT services revenue projected to decline 1.3% sequentially in the March quarter.
Yes, but: The impact is likely to be short-lived, around six months, noted Ray Wang, founder of Constellation Research. He added that once tariff details are clarified, US firms are expected to regain confidence and “shed this malaise of indecision.”
Also Read: Trump’s tariff salvo sets off alarm on US recession risks while stock markets bleed
The Delhi High Court has directed the Wikimedia Foundation, which operates Wikipedia, to remove statements deemed defamatory from the platform’s page on domestic news agency ANI, the latest such order to the popular online encyclopedia.
What happened: In 2024, ANI filed a defamation suit against Wikimedia in the Delhi High Court, objecting to a Wikipedia description that said the agency had faced criticism for being a “government propaganda tool.” ANI sought the removal of these statements.
In a ruling issued on Thursday, the court found the statements to be defamatory, saying they tarnished ANI’s professional reputation.
Chilling effect: Last month, Wikimedia Foundation petitioned the Supreme Court to quash its order, arguing that enforcing it would have a “chilling effect on free speech”.
Also Read: Section 69A repository of power to block online content, X argues in Karnataka HC
Also in this letter:
■ Amitabh Kant at Startup Mahakumbh
■ IT sector’s Trump headwinds
■ Wikimedia’s India setback
Zepto's Aadit Palicha, Mohandas Pai respond to Piyush Goyal's comments on Indian startups
Commerce and industry minister Piyush Goyal stirred controversy while addressing the Startup Mahakumbh 2025, with remarks that many saw as dismissive of India’s startup ecosystem.
What Goyal said: “We are focused on food delivery apps,” he noted, “turning unemployed youths into cheap labour, so the rich can get their meals without moving out of their house.” He urged Indian startups to pivot towards high-tech sectors like semiconductors, robotics, AI, and advanced manufacturing.
His rhetorical question, "Are we going to be happy being delivery boys and girls?" sparked strong backlash.
Also Read: Indian venture capitalists need to pivot to a new model of investing
Responses: Leaders across the startup ecosystem pushed back.
Aadit Palicha: The Zepto CEO defended the startup community, saying over 1.5 lakh people earn livelihoods through Zepto, which has paid over Rs 1,000 crore in taxes in just 3.5 years.
“If that isn't a miracle in Indian innovation, I honestly don't know what is,” he said. Palicha also argued that India lacks large AI models because it hasn’t built “great” internet companies, and urged the government and investors to stop stifling them.
Mohandas Pai: The former Infosys CFO asked Goyal to not “belittle” startups. He pointed out that China invested $845 billion between 2014 and 2024, compared to India’s $160 billion.
“Why is Minister @PiyushGoyal @AshwiniVaishnaw not helping solve these issues?” he questioned.
Anupam Mittal: Shaadi.com founder and Shark Tank India judge praised Indian deep-tech startups in AI, space-tech, and material science, but flagged a major gap in capital and growth support.
Also Read: Tech startup funding rose 23% in 2024, deeptech saw 78% boost: Nasscom report
Was extremely unhappy after exiting Flipkart as it was unplanned: Sachin Bansal
Sachin Bansal has revealed that he was deeply unhappy after selling his entire stake in ecommerce giant Flipkart in 2018, describing the exit as unplanned.
Quote, unquote: “(Paytm CEO) Vijay and I talked extensively after I exited Flipkart, and he jokingly said that you are the most unhappy billionaire I’ve ever seen. I was extremely unhappy after exiting because it was not something I had planned… it just happened,” Sachin said at the Startup Mahakumbh in New Delhi.
In 2018, US retail giant Walmart acquired a majority stake in Flipkart. Sachin earned around $1 billion after fully exiting the company, while cofounder Binny Bansal only partially sold his stake.
Souring ties: The unrelated Bansals cofounded Flipkart in 2007 as an online bookstore. Sachin served as CEO for nine years, before moving into the chairman role in January 2016, with Binny taking over daily operations.
Following Walmart’s entry, reports surfaced of strategic disagreements between Sachin and the company board, which ultimately led to his exit. He later founded Navi, a financial services company.
On RBI: At the same event, Bansal also took aim at the Reserve Bank of India. “In fintech, the regulator becomes an important stakeholder. Sometimes depending on the situation, they (regulator) can become the most important stakeholder in the equation at the detriment of customers or employees,” he said during a panel discussion.
India should lead the world in technological advances: Former Niti Aayog CEO Amitabh Kant
Technocrat Amitabh Kant on Friday urged Indian startups to lead the global technological landscape, rather than simply imitating the West.
Charging ahead: Speaking at the Startup Mahakumbh in New Delhi, the former Niti Aayog chief executive said India must build sovereign frontier models using indigenous datasets to eliminate the inherent biases found in foreign models.
“This is the age of huge disruption. India must demonstrate that we are willing to make a quantum jump forward in deeptech, and that we are able to disrupt sectors like space, battery, drones and green technology,” he said.
More for less: Citing the Indian Space Research Organisation (Isro) as a benchmark, Kant encouraged startups to focus on cost-effective innovation. “We must achieve more for less, just as Isro has done in space. If it can launch missions, reach space, and land on the moon at a fraction of the cost of a Hollywood movie, startups can do the same,” he said.
Also Read:Fintech self-regulatory organisations should have broad representation: Amitabh Kant
India's $280 billion IT sector likely to face setback from Trump’s reciprocal tariffs
India’s $280 billion software services industry may suffer a blow as reciprocal tariffs proposed by the Trump administration threaten to curb US tech spending.
Explained: The tariffs will dampen demand for IT services rather than disrupt supply, said Akash Verma, an executive at research firm Everest Group. Key US sectors such as manufacturing, electronics, and retail are likely to face rising costs, prompting cuts in non-essential IT spending.
After a sluggish FY24, the demand was expected to rebound in the first two quarters of FY25. However, US government actions may delay this recovery, with IT services revenue projected to decline 1.3% sequentially in the March quarter.
Yes, but: The impact is likely to be short-lived, around six months, noted Ray Wang, founder of Constellation Research. He added that once tariff details are clarified, US firms are expected to regain confidence and “shed this malaise of indecision.”
Also Read: Trump’s tariff salvo sets off alarm on US recession risks while stock markets bleed
Wikimedia must remove India content deemed defamatory, court rules
The Delhi High Court has directed the Wikimedia Foundation, which operates Wikipedia, to remove statements deemed defamatory from the platform’s page on domestic news agency ANI, the latest such order to the popular online encyclopedia.
What happened: In 2024, ANI filed a defamation suit against Wikimedia in the Delhi High Court, objecting to a Wikipedia description that said the agency had faced criticism for being a “government propaganda tool.” ANI sought the removal of these statements.
In a ruling issued on Thursday, the court found the statements to be defamatory, saying they tarnished ANI’s professional reputation.
Chilling effect: Last month, Wikimedia Foundation petitioned the Supreme Court to quash its order, arguing that enforcing it would have a “chilling effect on free speech”.
Also Read: Section 69A repository of power to block online content, X argues in Karnataka HC
