‘India isn’t a cheaper version of US’: Anupam Mittal explains why global tech companies struggle in India

Entrepreneur Anupam Mittal, founder of Shaadi.com and investor on Shark Tank India, has expressed that India exposes weak pricing strategies in global tech companies. In a LinkedIn post, Mittal explained that many global tech companies entered India by simply converting their dollar prices into rupees, only to find that Indian consumers pushed back using various workarounds to avoid paying for products they did not consider essential.

Mittal, drawing from his experience with Shaadi.com, stressed that Indian consumers ask the crucial question, "Bhai, isse mera kya hoga?" - essentially, what's in it for me? He emphasized that India cannot be considered a cheaper version of the US, as Indian consumers expect more value for their money. Mittal believes that AI companies are currently learning this lesson as they introduce India-specific pricing and plans.

The entrepreneur noted that AI companies are facing similar challenges to those in telecom, payments, and entertainment sectors, which have been pushed to offer better value and innovate. While telecom and payments were successful due to immediate and legible value (cheaper calls, easier transfers), AI's value remains fuzzy for most users. Mittal argued that whoever can clearly demonstrate AI's benefits to Indian users will also master pricing, as the two are inseparable.

However, some social media users pointed out that AI companies face a unique challenge in that the 'outcome' of their products is not always obvious, even to the companies selling them. They suggested that finding the right use case for the right company is a significant challenge for AI products, involving a deep understanding of the domain, internal company processes, and more.

Ultimately, the "Bhai, isse mera kya hoga?" test, Mittal concluded, is one of the toughest pricing filters in the world, forcing companies to prove their value at the point of payment.