BENGALURU: Venture capital firm Accel partners Shekhar Kirani and Prayank Swaroop highlighted concerns about Indian AI startups lagging behind global competitors, despite having comparable technical abilities. They cited insufficient urgency and limited global vision as key issues.During a media roundtable on Wednesday, they observed that while India is experiencing an emergence of technically proficient, AI-focused founders, many maintain a cautious, risk-averse approach that could prove detrimental in this fast-moving sector. “In the Valley, it’s a warzone. Engineers are building, iterating, raising money, and chasing scale aggressively,” Kirani said. “In India, many still operate in peacetime mode, trying to optimise for capital efficiency, fixing bugs, and selling to five customers. That’s not how you win this AI cycle.” The disparity is evident in valuations. Kirani noted that US-based AI-first startups demonstrating revenue growth can achieve valuations over $500 million at $15 million ARR, while traditional SaaS firms with similar figures typically receive valuations around $100 million. “The market rewards velocity. If you’re an AI-native company growing fast, the delta in pull and valuation is unprecedented,” he said.Swaroop indicated a shift in investor perspectives. “Everyone’s looking for that breakout moment. Earlier, a company showing $1-2 million ARR might be considered early stage. Now, if it’s AI-first and compounding fast, the expectation is that it hits $50-100 million in revenue within 12-18 months,” he said. “The bar is higher, but so is the upside, if the founder is thinking globally.”
