Mr Bahl was speaking at the NDTV World Summit.
'Unicorn' is a term coined by a US American venture capitalist in the American context and India would do better by celebrating 'Indicorns', or enduring Indian businesses built as startups on the back of real revenues and profits, entrepreneur and investor Kunal Bahl has said.
In a wide-ranging conversation during the NDTV World Summit on Tuesday, the Snapdeal and Titan Capital co-founder also praised Prime Minister Narendra Modi's contributions to the startup ecosystem and recalled an anecdote about Ratan Tata which, he said, reflected the greatness of the titan of Indian industry.
On 'Indicorns', a term which was coined by him, Mr Bahl said, "We have been celebrating unicorns for many years. This term was invented by a venture capitalist in the US, in the context of the US, where companies over $1 billion are called unicorns, named after a mythical figure. Having built a unicorn, funded many companies which became unicorns, I asked why we are celebrating these when what our country needs right now is lasting enduring businesses where startups are built off the back of real revenues and real profits."
The entrepreneur said the ecosystem was too small for companies to become profitable relatively quickly even 10 years ago, but that has changed now. India, he said, has gone from 100 million internet users to over a billion and income levels have also gone up.
"We are seeing companies who want to be profitable doing so in two to three years from the starting point. So, why is there an obsession with a currency that is not ours? An amount which is irrelevant in our context - why Rs 8,300 crores, because that is what a billion dollars is?" Mr Bahl said.
"Isn't it better we build businesses with the intention of making them lasting and enduring and aim for goals which enable us to get there - like a Rs 100-crore revenue business, which is profitable, because the moment a company gets 100 crore in revenue and is profit-making, it is very likely it is not going to go out of business and will keep going from strength to strength," he added.
Mr Bahl argued that rather than India having 300 or 500 unicorns, it is probably better to have 10,000 'Indicorns' which can serve as the bedrock of the startup ecosystem and go on to become large, listed companies.
Changing Times
The investor said startups were not known when he began his journey in 2007 and Prime Minister Modi has left an "indelible mark" on the startup ecosystem.
"When I started my startup journey in 2007, I was 23 years. There was nothing known as a startup. The word came into the national parlance only around 2015, when the 'Startup India' initiative was evangelised and launched by the honourable Prime Minister. And, because of that, startups gained legitimacy and recognition," he said.
"Suddenly, parents in small towns were not aghast when their 23-year-old child, who went to IIT after a lot of struggle by the parents, said he will not join McKenzie or Goldman Sachs or Microsoft or Google, and start something, making zero money for the next few years and likely be in debt during that period. And that contribution, I think, significantly goes to the Prime Minister and, obviously, the role models that have now become available to the younger generation of founders," he added.
'Enduring Legacy'
Praising Ratan Tata, the late chairman emeritus of the Tata Group, who died earlier this month, Mr Bahl said he left behind an enduring legacy of contributions and wisdom.
The entrepreneur also shared an anecdote about meeting Mr Tata in 2014 and the fact that he remembered a promise made in passing even several years later.
"When I met him for the first time in 2014, I was in his office in South Bombay and after we had a short discussion about our business, he said, 'I would really love to invest if you will have me'. So, that was his humility, he did not assume that I would take his investment just because he was Ratan Tata. Of course I would take it, but he never assumed that. As the meeting was ending, he asked me if I had any other question, and I said I would love for him to come and meet our team at some point because it would change their life. He said okay," Mr Bahl recalled.
"Around three years ago, I met him at a wedding. I went up and introduced myself and he said 'Of course I remember and, by the way, I still owe you that trip'. So that was the greatness of Mr Tata. Imagine the tens of thousands of people he would have met over the years. He still remembered the promise that he made to me in passing in 2014. And I think that is such an enduring lesson for everyone," he added.
