Most Indian Firms Are Just Tech-Enabled, Not True Tech': Anupam Mittal
Anupam Mittal, founder of Shaadi.com and Shark Tank India judge, criticizes the misbranding of tech companies in India, highlighting the need for genuine technological innovation.
Tech CompaniesTechenabledInnovationStartup EcosystemAnupam MittalReal EstateJun 03, 2025
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.
Frequently Asked Questions
What is the main criticism Anupam Mittal has about Indian tech companies?
Anupam Mittal criticizes the misbranding of tech companies in India, where many firms are just tech-enabled and not genuine tech innovators.
What is the difference between a true tech company and a tech-enabled company?
A true tech company is driven by proprietary technology and strong margins, while a tech-enabled company uses existing technology to enhance its operations but lacks core technological innovation.
Why is it important for investors to distinguish between tech and tech-enabled companies?
It is important for investors to distinguish between tech and tech-enabled companies to avoid overvaluation and potential financial risks, ensuring they invest in companies with genuine technological innovation.
What are some examples of tech-enabled companies mentioned by Anupam Mittal?
Anupam Mittal mentioned companies like Zomato and Uber as examples of tech-enabled companies that depend on technology but do not meet the benchmark for pure tech valuation.
What does Anupam Mittal suggest for the sustainable growth of the Indian tech ecosystem?
Anupam Mittal suggests focusing on genuine technological innovation and a more rigorous and transparent approach to valuing tech companies for the sustainable growth of the Indian tech ecosystem.
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