In an era where raising venture capital has long been seen as a badge of honor, a quieter shift is underway. A growing number of technology companies, both in India and abroad, are choosing to build sustainable businesses without relying on external investors. In industries like smart cities, AgriTech, and enterprise software, the preference for bootstrapped growth over venture-funded scaling is becoming harder to ignore.
While the dominant narrative still celebrates unicorn valuations and billion-dollar funding rounds, the ground reality is changing. According to Bain & Company’s India Venture Capital Report 2024, venture funding in India declined by 37% last year, and global markets have seen similar corrections. Companies that are profitable, even without large-scale backing, are starting to command attention — not through flashy press releases but through consistent delivery and financial discipline.
London-headquartered Xpertnest is among the firms reflecting this shift. Founded in 2016 by Arun Kar, a military veteran; Chintan Panara, a technologist; and Pradip Butani, a finance strategist, the company has been expanding its footprint across the UK, Europe, and India without any venture capital or private equity backing. Recently, it reported an independent valuation of over $100 million (around ₹850 crore), assessed by a SEBI-registered merchant banker and a UK-based accounting firm. While independent valuations offer useful indicators, they are best interpreted with some caution in the absence of public financial disclosures. Still, the exercise underlines a broader trend: building businesses that prioritize client contracts and profitability over capital raises.
Bootstrapping Gains Ground
The concept of bootstrapping is hardly new, but it’s gaining new relevance in the current funding climate. Industry data shows that bootstrapped companies are often quicker to achieve profitability and maintain better control over their operations. However, the trade-off is slower scaling, especially in sectors where deep pockets are essential for R&D, sales, and market capture.
In segments like smart cities, private 5G networks, and enterprise automation — where Xpertnest operates — competition is fierce. Global giants like Siemens, Cisco, and emerging startups like Cityzenith are aggressively investing in smart infrastructure projects, often with heavy funding support. In India alone, the Smart Cities Mission is estimated to draw investments worth over ₹2 lakh crore by 2026, according to the Ministry of Housing and Urban Affairs.
Funding Versus Fundamentals
As the venture capital market tightens, the spotlight is turning back to old-fashioned business fundamentals. Several companies are now exploring alternative financing routes such as corporate bonds, debt instruments, and revenue-based financing to support growth without giving up equity.
In August 2023, Xpertnest, for instance, listed a corporate bond on an international stock exchange to improve liquidity. While still uncommon among mid-sized tech firms, such moves reflect a growing willingness to rethink the traditional venture capital path.
The Road Ahead
However, choosing the bootstrapped route does not eliminate risks. Companies competing in capital-intensive sectors will eventually need to scale faster, invest in innovation, and expand internationally — all of which require funding, whether internal or external.
For now, firms like Xpertnest are betting on operational excellence and strong client relationships to hold their ground. Whether this approach will be enough in industries dominated by global heavyweights remains to be seen.
Still, the rise of these self-reliant businesses marks a quiet but important correction in the startup world’s obsession with speed over sustainability — a reminder that sometimes, slow and steady isn’t just a fairy tale; it’s a real business strategy.
