Article · 12 min read

I wonder why there are only a few businesses like us, built to generate profits and not raise venture capital: Nithin Kamath

Nithin Kamath (interviewed) · Forbes India Free Beginner India

The Indian mirror to the answer: Kamath built Zerodha to India's largest broker taking zero outside capital, and he is precise about why. Money brings an obligation to manufacture returns, and the reflex to keep raising to lift valuations pushes founders to optimize growth over profit and customer. Read it as the discipline case: every rupee you do not raise is leverage and a decision you never have to defend to an investor, which is exactly why you size to one real milestone instead of grabbing the biggest round.

  • Raised money carries an obligation to produce investor returns that reshapes your decisions, so raise only what a real milestone needs
  • Chasing bigger rounds to lift valuation trades away profit focus and customer focus, the eChai edge case for restraint in India
  • You can reach real scale in India without the raise-again-every-few-months treadmill; runway discipline beats round size
Open on forbesindia.com ↗

It answers 2 questions

  1. How much money should I actually raise in my first round?
  2. How do I know if venture funding is even right for my startup, and what are the alternatives?

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