Bengaluru: Nithin Kamath has warned entrepreneurs about a common startup mistake: focusing on rapid expansion without building a sustainable business model.
Kamath believes many startups become obsessed with growth numbers, funding rounds, and customer acquisition while ignoring profitability. Although fast growth can attract investor attention, businesses that fail to manage costs often struggle in the long run.
India’s startup ecosystem has grown dramatically, with more than 100 unicorns emerging over the past decade. However, many startups have also faced challenges after funding conditions tightened globally. Investors today are paying greater attention to profitability and cash flow.
Kamath often encourages founders to focus on product quality, customer trust, and operational discipline. According to business experts, startups that balance growth with financial stability are more likely to survive market downturns.
Research shows that poor financial planning remains one of the leading reasons startups fail worldwide. Strong fundamentals, efficient spending, and customer retention are increasingly viewed as key drivers of long-term success.
