Most Indian Firms Are Just Tech-Enabled, Not True Tech': Anupam Mittal

India’s startup world is chasing tech valuations without the tech to back it up, said Shark Tank India judge and Shaadi.com founder Anupam Mittal. He called out what he sees as a growing illusion at the heart of the ecosystem, emphasizing the lack of genuine tech companies in India.

Speaking at an event hosted by Grip Invest, Mittal said India lacks companies that can match the innovation and profitability of U.S. tech giants like Apple, Meta, and Google. “We have companies posing as tech,” he said. “Everyone wants the tag—it unlocks higher valuations.”

He recalled spotting a real estate firm branding itself as a “consumer tech company” in a newspaper ad. “It’s absurd,” he said. “This is the kind of branding that misleads investors.”

Mittal drew a line between true tech companies—those driven by proprietary technology and strong margins—and what he called “tech-enabled” businesses that merely use digital tools to operate. “Be extremely careful,” he warned. “If you're going to give it a 5–7x revenue multiple, ask whether it's really tech or just using tech.”

Companies like Zomato or Uber, he noted, depend on tech but don’t meet the benchmark for pure tech valuation. “Mostly in India, it’s tech-enabled or posing as tech. Real tech is rare,” he said.

Mittal’s remarks land at a time when investors, especially retail ones, are navigating a landscape crowded with startups eager to wear the tech badge—whether or not they’ve earned it. This misbranding can lead to overvaluation and potential financial risks for investors.

The distinction between tech and tech-enabled companies is crucial for the sustainable growth of the Indian tech ecosystem. True tech companies are those that innovate and develop proprietary technology, which can lead to significant competitive advantages and higher profitability. On the other hand, tech-enabled companies use existing technology to enhance their operations but often lack the core technological innovation that drives true tech companies.

For investors, it’s important to look beyond the tech label and delve into the underlying business model and technological capabilities of a company. This due diligence can help avoid investing in companies that are merely tech-enabled and not true tech innovators.

In conclusion, Anupam Mittal’s insights highlight the need for a more rigorous and transparent approach to valuing tech companies in India. By focusing on genuine technological innovation, the Indian tech ecosystem can achieve sustainable growth and attract more meaningful investments.