‘We are not rich enough’: Founder says US style ‘fail fast’ advice doesn’t work in India

“Fail fast” may work in Silicon Valley—but in India, it’s a gamble few can afford, says Vipul Mehta, founder of CFO advisory firm Tipping Point, in a candid LinkedIn post urging Indian startups to prioritize profitability over hyper-growth.

Mehta argues that India’s startup environment cannot sustain the same risk appetite as the U.S., where safety nets and higher income levels allow entrepreneurs to rebound quickly from failure. 

“In the US, a software engineer makes $120,000. If their startup fails, they recover in six months,” he wrote. “In India, that same engineer makes ₹12–15 lakhs, supports family, pays Mumbai rent—and a failure sets them back two years.”

The gap in financial cushioning makes the Western startup mantra of “burn until breakthrough” not only impractical but potentially damaging in India. “Fast failure is a luxury,” Mehta notes. “It requires wealth to absorb the blow.”

With no unemployment benefits or healthcare support, Indian founders operate in a high-stakes environment where a failed startup isn’t just a career hiccup—it’s a personal and familial crisis.

Mehta points to Indian success stories like Zerodha, Zoho, and Freshworks as proof that profitability-first models are both effective and ethical. “They understood something American VCs often don’t—Indian founders can’t afford to play the ‘grow at all costs’ game.”

The post frames financial prudence not as a constraint but as a moral obligation. “Profitability isn’t just good business in India. It’s moral responsibility,” Mehta asserts, adding that Indian employees often have families depending on their salaries, making reckless burn rates irresponsible.

He calls for a new Indian startup playbook—one that respects the real risks founders and employees face. “Yes, aim big. But build profitable,” he writes. “Because in India, runway isn’t just about company survival. It’s about personal survival.”