“All Bengaluru Startups Are in Losses, Mumbai and Delhi Are Better,” says Anupam Mittal

In a recent engaging podcast, Anupam Mittal, founder of Shaadi.com and investor on Shark Tank India, sat down with the founder of Think School to unwrap some of the key realities behind fundraising, company building, and the evolving startup ecosystem in India. The discussion sheds light on the nuanced decisions entrepreneurs face and highlights emerging trends shaping the country’s business environment.

Should You Raise Funding? The Weight of Capital

One of the first critical questions tackled was whether startups should raise capital at all. Mittal emphasized that raising funds is a life-changing decision that shapes not just finances but the entire entrepreneurial journey. Equity funding in particular comes with heavy obligations: investors typically expect 30–50% annual returns over a long term, demanding relentless growth and commitment for a decade or more.

Mittal outlined that not all capital sources carry equal weight or cost. The cheapest—and most valuable—is customer capital, which validates your business upfront. This is followed by funds from friends and family, then debt or government grants. Equity financing, while often necessary, is the most expensive form of capital and should be approached with full awareness of its demands.

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Validating Your Idea with Practical, Low-Cost Methods

When it comes to validating business ideas, Mittal advocated for using quick, low-cost experiments before seeking funding. Simple tools like WhatsApp groups, social media polls, and engaging friends and family can provide critical early feedback. Leveraging digital communities and AI-powered mockups can help entrepreneurs test pricing and demand efficiently.

For service businesses, he stressed the value of “vaporware”—selling an idea or concept even before it physically exists—as a way to validate true customer interest. He summarized this approach as “fake it till you make it,” emphasizing real sales conversations over perfect prototypes.

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What Investors Really Look For: Founders Over Ideas

Mittal highlighted that especially at early stages, investors bet on exceptional founders rather than just ideas. Exceptionalism—being outstanding at execution, product vision, or market insight—is the key differentiator investors seek. While elite education can be a proxy for excellence, what matters more are deep industry knowledge, strong business acumen, and a unique edge on the market.

Key traits of successful founders include comfort with numbers, understanding of margins, strategic thinking, and an ability to see beyond obvious market trends.

Building Business Acumen: Start Selling Early and Learn Continuously

Founders are encouraged to get their hands dirty early by selling real products or services and learning to negotiate, influence, and understand customer needs firsthand. While exposure to finance or investment banking can sharpen macroeconomic understanding, spending too long away from “builder mode” may dull the entrepreneurial edge.

Mittal defined business acumen as the ability to identify where true profits lie, rather than assuming market size alone guarantees success.

What Will Boom in India’s Next Chapter?

Looking ahead to India’s unfolding business story, Mittal sees huge opportunities in branding. Many sectors, including furniture, fashion, and fast food, remain underbranded with space for new entrants to build powerful homegrown brands, especially boosted by social media.

Artificial intelligence is disrupting software-driven businesses across the board, with incumbents needing to adapt or risk obsolescence. The travel and experiences sector is also expected to grow as digital natives seek new adventures.

Additionally, the defense sector—particularly drone technology—is projected to see a tenfold increase in the next decade due to geopolitical shifts and growing security needs.

Brand India 2 & 3: The Rise of New Players

India’s market is awaiting “India 2 and India 3” brands—new, strong domestic brands emerging to challenge older players. Social media acts as an accelerator, allowing startups to disrupt established incumbents faster than ever before.

Hiring and Pitching: Focus on Unique Skills and Mindset

Mittal shared insights from his investor lens, focusing heavily on the founder and team qualities over just business plans. Good teams demonstrate a non-obvious mastery of their space and unique execution abilities.

Effective hiring involves reference checks and understanding candidates’ motivations and mindsets beyond resumes, ensuring cultural and strategic alignment.

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