Anand Lunia discusses public valuations and exit sizes for Indian venture-backed startups.
Insight
Lunia: India has a lower-middle-class boom, not a middle-class boom
“India doesn't have a middle class boom. It, however, has a huge lower middle class boom. Right. A huge number of people entering at 20, 25,000 rupees monthly income.”
Prediction Not checkable as stated
Lunia: Consumer brand outcome sizes will equal major tech startup exits
“When we do a brand, we do believe that it might take longer, but the size of the outcome will be no less than the size of a social media or a hotshot tech company.”
Assertion Partly supported
Lunia: Indian small borrowers have better repayment rates than multinational corporates
“Their repayment rates are far better than multinational corporates today in India.”
Prediction Not checkable as stated
Lunia: Indian small businesses will adopt self-service SaaS
“Contrary to perception and you know the common consensus between VCs today, we think that People will do self-service SaaS. So Indians have been written off. We believe that nobody will do self-service SaaS. We think these people will do self-service SaaS.”
Insight
Lunia: Indian Youth Consumer Spending Reflects Combined Household Income, Not Personal Earnings
“For a investor or an entrepreneur, This is a good audience because this then again, like I said earlier, The expenditure people will do is not restricted by the individual's income. It is about the income of the individual and the parents.”
Insight
Lunia: High investor demand hurts startups needing multi-year PMF discovery
“Particularly when the business needs a three year, four year discovery phase for PMF, then being too sought after by investors actually works against you.”