India has long been celebrated as a rising tech powerhouse, brimming with innovative startups in the fields of AI and SaaS. Yet, beneath this optimistic surface, a growing sense of disillusionment is beginning to take hold. A movement dubbed the ‘Skip India Movement’ is emerging among Indian tech founders, reflecting a collective decision to stop targeting Indian enterprises as customers.
This shift isn’t driven by lack of patriotism or ambition—it’s rooted in real frustrations. From repeated demands for free Proof-of-Concepts (PoCs) to a lack of timely decision-making and commercial clarity, many founders feel that selling to Indian businesses often leads to wasted time and dwindling resources. The result? A growing number of startups are looking beyond Indian shores, prioritizing global markets that offer more structure, speed, and reliability in enterprise sales.
In this blog, we’ll explore the origins of this movement, the challenges pushing Indian startups away from local clients, and the broader implications for the country’s innovation ecosystem People Matters
Understanding the ‘Skip India Movement’
Origins and Catalyst
The term ‘Skip India Movement’ was popularized by Vaibhav Domkundwar, CEO of Better Capital, who highlighted the challenges faced by AI startups in India. He noted that founders are increasingly avoiding Indian customers after being subjected to numerous unpaid proof-of-concept (PoC) requests. Domkundwar stated, “AI founders finally skipping selling to Indian customers after doing PoCs after PoCs and then being requested for even more ‘free’ PoCs. There is a limit to this… Enough is enough.” Analytics India Magazine
The Growing Sentiment
This sentiment is echoed by many in the startup community. Paras Chopra, founder of Wingify, shared that he had banned his team at Lossfunk, an AI lab, from engaging with Indian customers. Chopra remarked, “India was a tiny market and founders end up optimizing for the Indian market but can’t scale further.” Deccan Herald
Challenges Faced by Startups in the Indian Market
Exploitative Practices
Many startups report a recurring pattern of unpaid PoC requests, delayed decisions, and a lack of willingness to pay for early-stage innovation. Navaneeth PK, founder of ToolJet, shared, “A customer came in 2023, took a detailed PoC, ghosted us, and came back months later asking for support—again, without commercial clarity.”
Financial Strain
For AI startups, which often incur significant infrastructure costs for even a basic PoC, these engagements represent not just a lost sale but a material threat to their financial runway. “PoCs without timeframes are a startup killer. They indicate the customer doesn’t know what they want. That’s not a partner. That’s a time sink,” said Naveen Varshneya, founder of Saanjh.ai.
Cultural and Structural Issues
Some observers suggest that the underlying issue lies not with intent but with structure. Paras Chopra noted that many Indian enterprise buyers “don’t want to buy” — instead, they engage startups to validate internal ideas or benchmark existing tools.
Others point to a deep-rooted risk aversion in Indian enterprise IT culture. “Even when your solution works perfectly, you’re told: ‘Let’s pilot this in another location… then maybe we’ll consider a license.’ That cycle never ends,” said Pratik Desai, founder of KissanAI.
The Shift to Global Markets
Better ROI Abroad
Founders are now taking their talents elsewhere—mostly to the US, where customers are perceived to be more willing to pay, faster to decide, and more respectful of the time and tech being offered. “If you’re a startup, then absolutely cater to the US first,” said Michael Fowlie. “It’s rich, uniform, and huge.”
Strategic Realignment
The startup founders agree that skipping local PoCs can save time and align better with global product-market fit. This strategic realignment is seen as a way to ensure better returns on investment and to avoid the pitfalls of the domestic market. Analytics India Magazine
Counterarguments and Hope for Change
Advocating for Persistence
Not everyone agrees with the ‘Skip India’ sentiment. Aakrit Vaish, co-founder of conversational AI startup Haptik, cautioned against writing off the Indian market entirely. He argued that success requires a different playbook — one rooted in relationship-building, patience, and sustained engagement.
Reframing PoCs
Ritesh Kumar, founder of TranZact, said the key may lie in how startups frame PoCs. “PoCs aren’t the problem. It’s how we treat them. Stop thinking of them as validation exercises. Think of them as collaboration opportunities. That mindset shift matters.”
Conclusion
The ‘Skip India Movement’ underscores the challenges faced by AI and SaaS startups in the Indian market., from exploitative practices to structural and cultural hurdles. While some founders are turning to global markets for better opportunities, others advocate for persistence and a strategic approach to engage with Indian enterprises. Addressing these issues requires a concerted effort from both startups and enterprises to foster a more supportive and equitable ecosystem.
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