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In conversation with Editor Ankur Sharma, The News Strike, Chanakya Bellam, Whole-Time Director at AION-Tech Solutions, underscores that many Indian companies still scale prematurely without sufficient capital discipline, often prioritizing speed over sustainable unit economics and profitability. He emphasizes that successful fundraising today requires not just strong fundamentals but also clear strategic storytelling, governance credibility, and confidence in execution. Bellam notes that valuations are increasingly sustained by revenue quality, customer retention, and financial prudence rather than narrative alone, while weak governance, unclear profitability pathways, and overdependence on limited revenue streams remain major red flags.
1. Are Indian companies scaling too early without building capital discipline?
In many cases, Indian companies have prioritised rapid scaling over building strong capital discipline, particularly during periods of abundant funding. While speed to market is important, scaling without focus on unit economics, operational efficiency, and sustainable cash flows can create long-term risks.
A more resilient approach is to align growth with financial prudence—ensuring expansion is backed by strong fundamentals, disciplined capital allocation, and a clear path to profitability. Sustainable enterprises are built not on scale alone, but on balancing ambition with accountability.
2. What separates companies that successfully raise capital from those that struggle, despite having strong fundamentals?
Raising capital is not determined by fundamentals alone; it is equally about clarity of vision, credibility of execution, and effective storytelling. Many companies with strong fundamentals struggle because they fail to articulate a compelling narrative around market opportunity, differentiation, and timing.
Investors look for conviction—founders who can clearly show not just what they have built, but why it matters, how it scales, and how capital will accelerate value creation. Consistency in performance, transparency in governance, and alignment between strategy and execution further build trust.
Ultimately, successful fundraising lies at the intersection of strong fundamentals, strategic storytelling, and confidence in the team’s ability to deliver sustained outcomes.
3. Are valuations today driven more by narrative than actual business fundamentals?
Valuations today balance narrative and fundamentals, but the emphasis has shifted towards tangible performance. While a strong narrative can attract initial interest, it is no longer sufficient alone. Investors are now far more focused on revenue quality, unit economics, customer retention, and a credible path to profitability.
Narrative serves as an entry point, but fundamentals sustain valuation. Companies that align a compelling vision with consistent execution and financial discipline command long-term investor confidence.
4. What are the biggest red flags you look for while evaluating a company for investment or fundraising?
The first red flag is a lack of clarity on unit economics. If the path to profitability is unclear or overly dependent on continuous capital infusion, it signals structural weakness.
Misalignment between vision and execution—ambitious projections without operational depth or realistic milestones—is another major concern. Weak governance, limited transparency, or inconsistent reporting erodes trust. Overdependence on a single customer, market, or revenue stream also raises risk, as does a leadership team lacking cohesion or adaptability.
Ultimately, the absence of discipline—financial, operational, or strategic—is the most telling indicator that a business may struggle to scale sustainably.
5. Is Southeast Asia still the most strategic expansion route for Indian firms, or is that changing?
In essence, Southeast Asia remains relevant, but the mindset has shifted from “expand where it’s familiar” to “expand where there is a clear strategic advantage and long-term value creation.”.Southeast Asia continues to be an important expansion corridor for Indian firms, but it is no longer the default or one-size-fits-all strategy.Today, expansion is increasingly driven by strategic fit rather than geographic proximity. Indian companies are evaluating markets based on regulatory alignment, demand maturity, and their ability to differentiate in a competitive landscape. In many cases, this has opened up parallel opportunities in regions such as the Middle East, Europe, and even developed markets. The region still offers strong fundamentals—growing digital adoption, a young consumer base, and economic resilience—but companies are becoming far more selective in how they approach it.
6. Is data truly being used as a strategic asset, or just as a reporting tool in most organisations?
In many organisations, data is still predominantly used as a reporting tool rather than a true strategic asset. While companies have invested significantly in data collection and dashboards, the shift towards embedding data into real-time decision-making and business strategy is still evolving.
The real value of data lies not in hindsight, but in foresight—driving predictive insights, improving operational efficiency, and enabling smarter, faster decisions. However, this requires more than infrastructure; it demands cultural alignment, leadership buy-in, and the integration of data into everyday workflows.Organisations that successfully make this transition move from simply tracking performance to actively shaping outcomes—turning data into a core driver of competitive advantage.
7. Are companies investing in data infrastructure ahead of actual business readiness?
In many cases yes, companies are investing in data infrastructure ahead of true business readiness. There is a growing tendency to adopt advanced tools and platforms without clearly defining the use cases or building the internal capabilities required to derive value from them.A more effective approach is to build data capabilities in phases, closely tied to measurable outcomes. When organisations prioritise clarity of purpose over scale of investment, data evolves from a reporting function into a genuine driver of competitive advantage.Data infrastructure, on its own, does not create impact—it must be aligned with business objectives, decision-making processes, and organisational maturity. Without this alignment, investments risk becoming underutilised or purely operational rather than strategic.
8. How critical is governance in building long-term enterprise value, especially for high-growth companies?
Strong governance frameworks bring discipline to decision-making, enhance transparency, and mitigate operational and regulatory risks. They are critical in building investor confidence as companies navigate larger capital pools and complex stakeholder expectations.
While rapid scaling often prioritises speed, governance ensures sustainability, accountability, and trust. It is not a constraint on growth—it is an enabler. Companies that embed robust governance early are better positioned to scale responsibly and create enduring value.
9. If you had to rebuild a company today, what would you prioritise differently—capital, markets, or technology?
If I were to rebuild a company today, the priority would not be choosing between capital, markets, or technology—but sequencing them correctly. It would begin with a clearly defined market problem and a deep understanding of customer needs.Technology would then be leveraged as an enabler to build a differentiated, scalable solution, rather than being the starting point. Capital would follow in a disciplined manner—aligned with milestones and used to accelerate proven models, not to validate untested assumptions.
This approach ensures that growth is grounded in real demand, supported by purposeful innovation, and sustained by prudent capital allocation—creating a more resilient and scalable enterprise from the outset.
10. Will cross-border capital flows become more selective for Indian companies in the coming years?
Global investors today are far more focused on fundamentals—clear unit economics, governance standards, and a credible path to profitability—rather than broad exposure to high-growth markets. This reflects a maturing ecosystem where capital is being deployed with greater discipline and accountability.
At the same time, India continues to remain an attractive destination for cross-border capital due to its scale, digital adoption, and policy support. The shift, therefore, is not away from India, but towards backing companies that demonstrate resilience, capital efficiency, and long-term value creation.
In essence, the future of cross-border capital flows will be defined less by availability and more by selectivity—rewarding businesses that combine strong fundamentals with strategic clarity.
