Daijiworld Media Network – Mumbai

Mumbai, Jun 5: Venture capital firm Accel has raised concerns about India’s AI startup ecosystem lagging behind global competitors, despite the country producing technically strong founders. Accel Partners Shekhar Kirani and Prayank Swaroop attributed the gap to a lack of urgency and limited global ambition among Indian entrepreneurs.

Speaking at a media roundtable on Wednesday, the duo emphasized that while India has no dearth of engineering talent, the pace and mindset required to compete in the global AI race is missing. “In Silicon Valley, it’s a warzone. Engineers are building fast, raising funds aggressively, and scaling without hesitation,” said Shekhar Kirani. “In India, many startups are still in peacetime mode — focused on capital efficiency, fixing bugs, and acquiring a handful of clients.”

Accel pointed out that AI-native companies in the US are commanding sky-high valuations—over $500 million for startups showing $15 million in ARR (Annual Recurring Revenue). In contrast, traditional SaaS firms with the same metrics are valued around $100 million. Kirani remarked, “The market rewards speed. The delta in pull and valuation for fast-growing AI startups is unprecedented.”

Prayank Swaroop noted that investor expectations have risen sharply in the AI-first era. “Earlier, $1–2 million ARR meant early-stage. Now, if you’re AI-first and scaling quickly, the bar is $50–100 million revenue in just 12 to 18 months,” he explained.

The Accel partners urged Indian founders to think globally and push boundaries, warning that playing it safe may cost them the AI opportunity of a generation. “The upside is enormous — but only if you move fast and dream big,” they stressed.

As India positions itself as a technology hub, the message from Accel is clear: desi AI startups must shift from cautious builders to bold global contenders — or risk missing the next big wave.