'Positively provocative, meant to instigate entrepreneurs,' says Perplexity AI CEO on Piyush Goyal's deep tech remark
Perplexity AI founder Aravind Srinivas emphasized that success in deep tech can only be achieved if venture capitalists become risk-takers.
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Perplexity AI CEO Aravind Srinivas has backed Union Commerce Minister Piyush Goyal's recent remark on the disappointing numbers of the 'Deep tech' startups in the country in comparison to China.
At the News18 Rising Bharat Summit 2025, Srinivas called Goyal's statement, "positively provocative" which are meant to "instigate to build such technology".
The CEO said just like Indian startups, China went through the same trajectory decades ago. He exuded confidence in the domestic entrepreneurs, saying, "India can certainly produce its own TikTok, which is not a deep tech, but it's a product that received attention of global audience".
However, Srinivas emphasized that success in deep tech can only be achieved if venture capitalists become risk-takers.
"VCs in India are very risk averse as their investments are infused in companies where they wouldn't lose money," Srinivas said. "However, the mindset should be like 95% of my investments would fail, but 5% percent of my investments would give me 100x returns. I don't think that mindset exists among Indian venture capitalists," he added.
Perplexity AI, founded in 2022, recently achieved $100 million in Annual Recurring Revenue (ARR). It is going to be valued at $18 billion in the next funding round.
Recently, Union Commerce Minister Piyush Goyal took a jab at Indian quick commerce and food delivery startups, saying that their focus is on "turning unemployed youth into cheap labour so that the rich can get their meals without moving out of their house".
Comparing it with China, Goyal said, "The other side is working on developing electric mobility, battery technologies and dominating the electric mobility system".
On Deep tech startups, Goyal said it is disturbing that India has only a thousand of them. While the other side (China) is doing robotics, automation, machine learning, and preparing themselves for 3D manufacturing.
Goyal's remark has largely received a barrage of criticism from entrepreneurs like Zepto co-founders Aadit Palicha, BharatPe co-founder Ashneer Grover, and investors such as Mohandas Pai.
Yesterday, Goyal responded to the backlash, calling it "unfortunate".“I have been bashed up a little bit by Mohandas Pai in the last few days for my appeals for startups to focus on innovation,” Goyal said. “But I do believe it is unfortunate that the whole issue of innovation was criticised. Sometimes it is important to shake up an ecosystem to make it realise the urgency of the situation".
