Aadhaar was a $1.3 billion 'misstep', says Hotmail Co-Founder Sabeer Bhatia

Hotmail Co-Founder Sabeer Bhatia criticised Aadhaar, stating that voiceprints and video recordings would have been cheaper and better at automating security and verification processes

Sabeer Bhatia, co-founder of Hotmail, has criticised India’s Aadhaar project, calling it an expensive “misstep” that could have been developed at a fraction of the cost.

 

Speaking during a podcast Prakhar Ke Pravachan, hosted by Prakhar Gupta, Bhatia claimed that Aadhaar, which reportedly cost $1.3 billion, could have been built for just $20 million using voice and video recognition technology.

 

Aadhaar is $1.3 billion ill spent: Bhatia

 

Bhatia questioned the reliance on biometric data such as fingerprints and iris scans, arguing that a voice and video-based identity system would have been a simpler and more cost-effective solution.

 

 

“Aadhaar took all of your biometrics, but where is that being used?” Bhatia remarked. “A better way to solve the problem of unique identity would be video and voice printing technology - something every smartphone already has. You can build it for under $20 million.”

 

He also raised doubts about the expertise behind Aadhaar’s development, stating, “Whoever did this is not a technologist. They don’t know technology; they have never coded in their life - that’s why this problem exists. I have built things with my own hands. I know what technology should be used for, and what purpose it should serve.”

 

Voiceprints, video recordings more cost efficient

 

Elaborating on his proposal, Bhatia explained that voiceprints and video recordings could serve as unique identifiers stored in a central database. This, he suggested, could be used to automate security and verification processes, particularly at airports.

 

“The moment someone walks into an airport, the system would recognise them and say, ‘Welcome Mr Prakhar, you’ve already been verified.’ There would be no need to show an ID card.”

 

According to Bhatia, such an approach would not only enhance security and efficiency, but also significantly reduce costs compared to Aadhaar’s biometric framework.

 

UPI is nothing more than Venmo: Bhatia

 

When asked about Unified Payments Interface (UPI), India’s widely used digital payments system, Bhatia was equally dismissive, likening it to Venmo- a US-based peer-to-peer payment platform.

 

“UPI is nothing more than Venmo,” he remarked, downplaying its uniqueness in comparison to other global payment solutions.

 

No intention to anger anyone: Bhatia

 

Addressing concerns that his comments might upset Aadhaar’s architects, Bhatia made it clear that his remarks were not meant to offend, but to highlight inefficiencies.

 

“It’s not my intention to anger anyone, but I would humbly like to state that they should use their brains. This is money ill spent. $1.3 billion! Are you kidding me?” he concluded.

 

Who is tech entrepreneur Sabeer Bhatia?

 

Bhatia, one of the most influential entrepreneurs of the 1990s, is best known for co-founding Hotmail alongside Jack Smith in 1996. The duo launched the email service on America’s Independence Day (July 4, 1996) to symbolise the freedom it provided from ISP-based email accounts.

 

Within three months of launch, Hotmail had gained 300,000 subscribers, and within 18 months, it had grown exponentially, attracting the attention of Microsoft founder Bill Gates. In 1998, Bhatia sold Hotmail to Microsoft for Rs 3,300 crore ($400 million), a deal that turned Hotmail into what is now known as Outlook.

 

After selling Hotmail, Bhatia launched a messaging service, JaxtrSMS and an e-commerce firm called Arzoo Inc. In the year 2021, Bhatia once again created a buzz in the market by co-founding ShowReel, which is an AI-generated powered learning platform.