Sanjiv Goenka has a very different view of the new-age startup economy. His question is simple: If a company is losing thousands of crores every year, what exactly are we valuing?
In his view, a business shouldn't become attractive simply because investors keep increasing its valuation on paper. A ₹2,000 crore valuation means very little if the underlying business cannot consistently create profits or cash flow.
His philosophy is almost the opposite of the valuation-first startup culture: build a real business first. If your company is valued at ₹1,000–2,000 crore but is generating ₹50 crore of genuine business and building sustainable economics, that makes more sense to him than a company carrying a massive valuation while burning thousands of crores year after year.
And that's why Goenka says he doesn't understand — or invest in — businesses whose story is primarily about equity rounds, unicorn status and future valuation, while profitability keeps getting pushed further into the future.
Valuation is a number.
Revenue is reality.
Profit is proof.
Cash flow is survival.
You can raise billions and become a unicorn on paper.
But eventually, the business has to make money. 💰
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