The Unicorn Hype: Rishad Premji's Perspective on Startup Valuations

Wipro's executive chairman Rishad Premji criticizes the overemphasis on achieving unicorn status in India, stating that creating sustainable businesses should take precedence over chasing valuations. He argues that many successful companies don't reach unicorn status but still contribute significantly to the economy, as highlighted by a recent CII report.

Wipro Executive Chairman Rishad Premji has voiced criticisms regarding the excessive focus on unicorn status among startups in India, labeling it as 'overhyped.' Premji stressed the importance of building sustainable businesses rather than prioritizing valuations from the outset.

He highlighted a concerning trend where startups aim to reach unicorn status—companies valued over USD 1 billion—within mere months of inception. This, according to Premji, signifies a red flag in business strategy, emphasizing that many companies succeed without achieving unicorn valuations.

A joint report by CII and McKinsey & Co. underscores the economic impact, predicting that new unicorns could contribute USD 1 trillion to India's economy by 2030. Despite over 100 Indian unicorns, Premji urges a focus on business sustainability alongside economic growth.

(With inputs from agencies.)