TAM is unlocked bottom-up

In the early days of any tech boom, ambitious founders followed a well-trodden path - relocate to Silicon Valley and build for global markets. Many succeed spectacularly, becoming household names like Sabeer Bhatia or Arvind Srinivas, inspiring countless others to follow.

However, at the crest of these waves, we increasingly see founders pivot away from global aspirations to focus exclusively on India. During the dot-com era, regional platforms like Mapmyindia and Rediff gained tremendous popularity. The mobile revolution brought us PayTM and ShareChat. Now, in the AI era, companies like Sarvam and Krutrim are developing AI products tailored to India.

This trend has grown exponentially over time, reinforced by repeated proof that building for India creates a competitive moat rather than a limitation. Business models that thrive in India are often so distinct that they simply cannot be transplanted elsewhere, nor do they need to be. India itself represents such a vast and diverse market that there's ample room for innovation.

This read aims to get into the average Indian consumer’s psyche and perhaps inspire more founders to build for Bharat, not despite Bharat.

Why Western models falter in Indian soil

• PhonePe vs. Apple Pay

It might just be illegal to talk about India-specific innovations and not bring up UPI. Why has UPI spawned fintech giants like PhonePe and Google Pay's Indian version when no US company has successfully replicated this model? The answer lies in building for conditions unique to us:

• A billion people skipping credit cards altogether

• Demonetisation is creating urgent demand for digital payments

• Cultural resistance to card transactions without OTP verification

• The need for a zero-cost and instant payment accessible to everyone

Apple Pay and similar Western solutions work primarily by linking cards - a model doomed in India, where most consumers either don't have cards or feel uncomfortable transacting without the security of OTPs. 

No US fintech could copy PhonePe's trajectory because they simply didn't have the combination of UPI infrastructure, demonetisation catalyst, and a population ready to bypass traditional banking steps altogether.

• Zepto and BlinkIt vs. DoorDash and Instacart

Quick commerce is another popular yet fascinating example of how India forged its path while the West pursued different models. Zepto, Blinkit, and others have built a distinctly Indian approach to rapid fulfillment:

• Leveraging affordable labor while generating employment for lakhs

• Recognising that Indian consumers will prioritise convenience only if it's affordable

• Creating dark stores that cater to neighborhood preferences - stocking small-ticket biscuits and sodas in less affluent areas while offering protein powders and exotic fruits in more affluent ones

• Embracing Cash-on-Delivery, a payment option for driving e-commerce adoption in a cash-heavy economy

The contrast of Indian quick commerce apps with Instacart and DoorDash couldn't be more striking. In Western markets, these services operate under entirely different conditions: consumer behavior favors monthly bulk shopping rather than frequent small purchases; labor costs are higher, which makes home delivery a premium service with substantial fees and expected tips; and COD models are largely irrelevant in economies where digital payment trust is already established.

• Sharechat vs. Twitter 

Social media presents another fascinating case study in India-specific innovation. ShareChat succeeded by meeting users exactly where they were, creating a frictionless experience with no learning curve, and giving 90% of Indians a sense of belonging through vernacular content, cultural relevance, and behavioral alignment.

On ShareChat, users don't post primarily to go viral - they share content for their community, region, and language group. The emphasis on shareable and lighthearted content that resonates with specific communities stands in stark contrast to the individual expression model dominant on Twitter.

Koo's attempt to become "India's Twitter" illustrates this distinction. By essentially replicating Twitter's model with added language support, Koo appealed mainly to the same small segment of tech-savvy users already served by global platforms. ShareChat succeeded precisely because it was built from the ground up for our distinct communication preferences, unlike Koo.

There are still gaps in the Fintech space

Despite significant progress, financial services still present major opportunities for India-specific innovation. While apps like Groww and Zerodha have democratized investments for tech-comfortable Indians, a large majority still aren't financially literate enough to invest directly through apps.

Our portfolio company, Wealthy, addresses this gap brilliantly by understanding India's need for intermediaries. Rather than forcing users to jump directly into investing (the Silicon Valley approach), Wealthy empowers financial advisors with technology, maintaining the trusted human relationship while enhancing capabilities through digital tools.

This approach acknowledges a fundamental truth about India's economy: In a high-trust environment, many consumers prefer guidance from a trusted advisor rather than a faceless app. By embracing this reality rather than fighting it, Wealthy has created a model that works with local structural characteristics rather than against them.

TAM can be unlocked if you view it bottom-up

Perhaps the most persistent myth about building for India is that it means accepting a smaller TAM. The reality is precisely the opposite. In India, TAM is always waiting to be unlocked - it's a function of reducing friction and creating new behaviors appropriate to our context.

Counterintuitively, in India, if you build with a bottom-up approach, you'll unlock a huge market share because most companies are still building for the top 10% - those who understand English, possess sufficient education, and are comfortable using digital products daily. The real opportunity, however, lies in the next 500 million Indians entering the digital economy who need solutions built for their specific contexts.

The next time someone suggests your business should "just do what worked in the US," remember that the most successful Indian companies aren't carbon copies of their Western counterparts. They're distinctly and proudly Indian - built for our constraints, our people, and our future.

As we move deeper into the AI era, the opportunities to build uniquely Indian solutions will only multiply. The question isn't whether we should build for India or the world - it's how we can leverage India's unique characteristics to build something impossible to create anywhere else.

That doesn’t sound like a constraint to us.