‘We could’ve built WhatsApp’: Sabeer Bhatia says India’s babus killed bigger ideas
Hotmail co-founder Sabeer Bhatia launched a blistering critique of India’s startup ecosystem, blaming bureaucratic rigidity and a risk-averse culture for stifling innovation and dragging down world-changing ideas. “We could’ve built something bigger than WhatsApp,” Bhatia said in a podcast, recalling how TRAI allegedly once shut down a venture of his that was gaining traction.
“We weren’t violating any rule. But some babu interpreted it differently, and that was it. Had this happened in the U.S., the idea would’ve scaled.”
In a wide-ranging talk, Bhatia argued that India’s ecosystem rewards conformity, not originality. “Uber broke every taxi regulation on the planet. Could that company have come from India? Zero chance,” he said, pointing out how most bureaucrats in India are more interested in enforcing rules than enabling innovation.
According to Bhatia, India’s problem is deeply cultural. “New business models require new thinking. But here, the instinct is to shut things down. People don’t ask, ‘What if this works?’ They say, ‘It won’t work,’ and walk away.”
Drawing from personal experience, Bhatia said it’s nearly impossible to nurture out-of-the-box ideas in India. “In the Valley, if a kid has an idea, everyone helps them build on it. Here, 20 people will tell you, ‘Not possible.’ And we’re obsessed with money, not purpose. When we built Hotmail, we didn’t know if it would make money. We just wanted to solve a problem.”
He also slammed the education system, calling it “raddi.” “Sixty-five thousand kids go to Kota every year just to crack JEE. Are they becoming entrepreneurs or killing their brain cells?” he asked. “Even our brightest IIT grads end up chasing jobs at JP Morgan. Where’s the critical thinking?”
Bhatia believes India’s startup playbook—built on business plans and risk-avoidance—is the death of real innovation. “Writing a business plan is the beginning of the end. No one here wants to build for the world. They just want a job.”
