Sabeer Bhatia, co-founder of Hotmail (acquired by Microsoft in 1997) and one of the early pioneers of the Internet startup boom, believes Indian entrepreneurs need to stop copying global models and start thinking independently. In a conversation with Ayanti Bera, Bhatia talks about the future of AI, why basic research matters, and how his new AI-powered entrepreneurship programme aims to nurture original thinkers. Excerpts:
How do you view the evolution of the Indian startup ecosystem compared to Silicon Valley in the early days?
The Indian startup ecosystem can’t mirror what Silicon Valley did in the early Internet era because the Internet is now global. Products launched in the US are instantly available here. So, if we simply replicate or localise existing models, we’re setting ourselves up for failure. These global giants can easily enter our markets and beat us. Indian entrepreneurs must think ahead and focus on what the next wave of businesses will be. That’s where the real opportunity lies.
Are Indian startups building globally competitive SaaS companies?
For now, yes. But even SaaS as we know it is becoming obsolete. Companies like Oracle and Salesforce are transitioning to AI agents. Agentic technology allows people to interact with systems in natural language rather than through data queries. That’s the future. Founders should be exploring these new paradigms rather than sticking to conventional SaaS models. I won’t define the roadmap for them, but they must stay aware of the shift that’s underway.
What advice would you give to aspiring founders?
Start with a big, crazy idea, something no one has attempted yet but has the potential to create massive impact. Don’t begin with what’s safe. Begin with the boldest vision you can imagine, and then work backwards. Break it down into small, executable steps that will eventually help you realise that big idea.
Is there enough risk capital in India to support such bold ideas?
We need the right kind of founders before we worry about the capital. Once you have founders who are deeply passionate, the money will follow. Let’s find the people who are so driven by their vision that they’re not worried about the risks. That’s the first step.
You’ve launched an entrepreneurship course for school students. What’s the idea behind introducing it at the K-12 level?
It’s about changing how young people think. The course I’ve designed for Orchids The International School focuses on training the brain to make micro-decisions, something that’s crucial for entrepreneurs. By introducing this way of thinking early, we can cultivate a generation that approaches problems creatively and independently.
What makes this course different from traditional entrepreneurship education?
It’s powered by AI, and it’s designed to be highly efficient. We’ve broken traditional one-hour lectures into two-and-a-half-minute micro-learning videos. Then, students are asked 30 critical-thinking questions based on that material. They have to articulate their responses verbally, just like in a real-world pitch or interview. The AI evaluates these answers and gives feedback. It’s not just passive learning, it’s immersive, skill-building education.
Where do you see the biggest opportunity for Indian entrepreneurs right now?
There are over 700 million smartphone users in India. That’s a massive user base. The opportunity lies in creating ideas that go beyond delivery apps and quick commerce. Think of how to leverage this digital reach to solve deeper, more meaningful problems.
There’s ongoing debate comparing Indian and Chinese startup ecosystems. What’s your take?
The truth is, we lack deep tech startups. And rather than playing the blame game, we need to own that problem. That includes everyone: government leaders, investors, educators, and founders. Our ecosystem doesn’t support basic research well enough. There’s not enough funding or encouragement for original thinking and scientific inquiry. We have to shift our mindset, invest in long-term R&D, and foster an environment where deep tech can thrive. Accountability is key, everyone needs to take responsibility and ask what they can do to fix this.
