Indian start-ups need $40 bn-$50 bn yearly to conquer world: Mohandas Pai

India's tech sector to employ 10 mn engineers in next 10 years, says former Infosys CFO at InFinity Forum

Indian start-ups need $40 billion-$50 billion of capital a year to be able to go outside the country and conquer global markets, said former Infosys Chief Financial Officer T V Mohandas Pai on Saturday.

“India does not lack in tech talent -- the information technology sector and tech start-ups together employ more than 1.5 million engineers today and that number will hit 10 million in the next 10 years. What we lack is enough domestic capital to support our tech talent,” he said. 

Pai, who is the Chairman of VC firm Aarin Capital, was speaking at the InFinity Forum organised by International Financial Services Centres Authority (IFSCA) and Bloomberg.

The former Infosys CFO said: “Fintech start-ups in the country have helped move financial services away from the tyranny of the institutions to the democracy of the individual. Before UPI (united payments interface), a person would be at the bank’s mercy to get a transaction done. Now, he can do it anytime within 30 seconds.”

Pai said that while technologies like blockchain will gradually lead to greater disintermediation (decreasing the role of financial institutions), banks will remain an important part of the system for the foreseeable future.

“One impact of the disproportionate capital that fintech is getting is that entrepreneurs like Kunal Shah are building companies like Cred. As a result, cards have just become a commodity. Fintech companies are making products (so personalised) that it is like making medicines tailored to a person’s DNA,” explained Pai.