Latest news with #Kirani
Time of India
5 days ago
- Business
- Time of India
The AI story not many are telling: What India is about to lose by remaining in peacetime mode in a warzone
Even as the global AI scenario starts to resemble a true warzone, Indian artificial intelligence players may have set themselves up for a below-par show by continuing to function in peacetime mode, two venture capital insiders have cautioned. Despite a surge in technically skilled founders in the Indian artificial intelligence sector, concerns are growing about the country's startups falling behind their global counterparts. Shekhar Kirani and Prayank Swaroop from venture capital firm Accel have raised alarms over the cautious approach many Indian AI companies are adopting, , The Times of India reported on June 5. During a recent media roundtable, they emphasised that a lack of urgency and a limited global vision are hindering progress in this rapidly evolving industry, the report (by Supriya Roy) said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Buy Now Caution versus competition Kirani pointed out a stark contrast in operational mindset between Indian and US-based AI startups. 'In the Valley, it's a warzone. Engineers are building, iterating, raising money, and chasing scale aggressively,' ToI quoted him as saying. In stark contrast, many Indian founders seem to be operating in "peacetime mode," focusing on capital efficiency instead of pursuing rapid growth, he observed. Live Events According to him, this cautious approach may not hold up in the competitive AI landscape, where speed and scalability are paramount. Valuation disparities: A clear divide The differences between Indian and US AI startups are also reflected in their valuations. Kirani noted that US AI-first startups can achieve valuations exceeding $500 million with $15 million in annual recurring revenue (ARR), while traditional software-as-a-service (SaaS) companies with similar figures typically see 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 remarked. Investor expectations: Changing scenario Swaroop highlighted a shift in how investors assess potential in the AI sector. 'Everyone's looking for that breakout moment,' he said. He explained that the threshold for what is deemed an early-stage company has risen. Previously, businesses with $1-2 million ARR were considered early stage, but now, AI-first companies are expected to reach $50-100 million in revenue within 12-18 months if they are growing rapidly. 'The bar is higher, but so is the upside, if the founder is thinking globally,' he added. India AI scene: The road ahead As the Indian AI landscape matures, it is essential for startups to adopt a more aggressive approach. Embracing a global vision and prioritising rapid growth could be key to competing with their counterparts in the US. The call for a shift in mindset is clear: to thrive in the AI sector, Indian startups must act decisively and innovate swiftly.
Time of India
6 days ago
- Business
- Time of India
Desi AI founders risk falling behind overseas peers: Accel
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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Promoções imperdíveis de voos baratos Voos | Anúncios de Pesquisa Saiba Mais Undo "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." Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
6 days ago
- Business
- Time of India
Accel warns Indian AI founders risk falling behind
Accel warns Indian AI founders risk falling behind BENGALURU: Accel partners Shekhar Kirani and Prayank Swaroop said Indian AI startups risk falling behind their global counterparts due to a lack of urgency and global ambition, even as technical capabilities catch up. Speaking at a recent media roundtable on Wednesday, the investors said that while the country is seeing a new wave of technically strong, AI-native founders, many are still operating with a conservative, risk-averse mindset that could cost them valuable time in a hyper-competitive cycle. '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.' This difference in attitude is also reflected in valuations. According to Kirani, an AI-first startup in the US showing revenue acceleration can command a valuation of over $500 million at $15 million annual recurring revenue (ARR), while a traditional SaaS firm with similar numbers would likely be valued closer to $100 million. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like O novo dispositivo que os idosos usam para ajudar na neuropatia (dor nos nervos) A arte do herbalismo Undo 'The market rewards velocity. If you're an AI-native company growing fast, the delta in pull and valuation is unprecedented,' he said. Swaroop added that investors, too, have recalibrated expectations. '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.' Accel has backed Indian AI startups such as Cursor and RapidClaims. While bullish on India-specific use cases such as cost-efficient inference, voice interfaces, and regulatory-compliant models, the partners emphasised that a strong go-to-market motion, especially in the US, is still essential. 'Platform adoption decisions still get made in the Valley,' said Kirani. 'If your product isn't getting used there, even Indian engineers hesitate to adopt it. That's why we ask our founders to be present in the Bay Area early.' Calling the current moment a '24- to 36-month land grab,' both partners urged founders to prioritise speed and product-led growth. 'If you're not compounding fast, you'll be irrelevant by the time the dust settles,' Swaroop said. 'This isn't a time to save money, it's a time to fight.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
