“Bhujia Over Bots?” Gaurav Munjal Slams India’s Startup Choices as Global AI Explodes
India’s startup scene just got a reality check—from one of its own.
Gaurav Munjal, CEO of Unacademy and Airlearn, didn’t hold back when he dropped this fiery statement on LinkedIn:
“$465B investment in AI globally. Less than $1B in India. We are busy building Bhujia companies while others are dominating in AI.”
The internet lit up.
Some laughed. Some got offended. Others asked the hard question: Are we really missing the AI bus while chasing low-risk, low-tech business models?
Let’s dive into what this viral moment really means—and why it struck such a nerve.
The Post That Sparked a Storm
Munjal’s post wasn’t subtle. It called out India’s shockingly low AI investment compared to the rest of the world—and poked at the country’s obsession with consumer startups like snack brands and personal care products.
And the numbers don’t lie:
- $465 billion – Global AI investment (2024)
- $109.1 billion – U.S. alone
- $9.3 billion – China
- $4.5 billion – U.K.
- $1.16 billion – India (12th place globally)
Even over 12 years, India’s total private AI investment is less than what the U.S. did in 1 year.
The world is sprinting ahead in AI. India? Still warming up.
“Bhujia Companies” – A Metaphor That Hit Hard
Munjal’s phrase “Bhujia companies” didn’t just go viral—it became symbolic.
He wasn’t literally talking about snacks. He was calling out a deeper problem: too many Indian startups are playing it safe, focusing on quick returns and familiar categories—beauty, food, fashion, delivery—while ignoring complex tech like AI, robotics, and semiconductors.
“India’s startup scene is becoming the land of soaps, snacks, and skincare,” one commenter noted.
The implication? We’re building convenience, not computing power.
The Internet Reacts: Laughter, Rage, and Brutal Honesty
Munjal’s post triggered a flurry of reactions—some supportive, some defensive, and many painfully honest.
🔹 One user wrote:
“We became the world’s IT back office, not its innovation lab. That mindset is still holding us back.”
🔹 Another commented:
“Can’t deny the AI gap, but no need to mock other industries. Every business has value.”
🔹 And a third, sarcastically added:
“We’ll catch up with AI… by 2036 maybe?”
Clearly, Munjal struck a nerve. But he also started a conversation India desperately needed.
Why India Is Lagging in AI—Despite Its Talent
Here’s the irony: India is full of top-tier engineering talent. We power global IT, supply the world with coders, and have a massive youth population. Yet we’re falling behind in cutting-edge tech.
Why?
1. Investor Risk Aversion
VCs love quick wins. AI? It’s expensive, slow to scale, and complex. Most Indian investors would rather fund another D2C skincare brand.
2. Founders Playing It Safe
Why try to build the next OpenAI when you can launch a food delivery app that gets acquired in 3 years?
3. Poor Infrastructure for AI R&D
Building AI models needs serious hardware—GPUs, compute clusters, cloud credits. India doesn’t have the kind of national AI infrastructure needed to compete globally.
The Government’s Big Bet—Will It Be Enough?
In March 2024, India finally took a major step, approving the Rs 10,372 crore “India AI Mission.”
That’s over $1.2 billion allocated for:
- AI compute infrastructure
- Foundational models
- Startup grants
- Responsible AI research
It’s a start. But public money alone won’t fix the problem. India needs its startup ecosystem to step up, take risks, and build what the world hasn’t seen yet.
What India Should Be Building
If Munjal’s wake-up call worked, we’d see:
- More AI-first startups in healthcare, finance, education, and energy
- Deep-tech incubators at IITs and IIITs
- Investors willing to write 10-year cheques for hard problems
- Founders solving real-world Indian issues using GenAI, robotics, edge computing, and more
We don’t need fewer Bhujia companies. We need more brains building bots alongside Bhujia.
Final Take: Gaurav Munjal Said What Others Were Scared To
Was the “Bhujia” line controversial? Sure.
Was it necessary? Absolutely.
Because if India wants to lead in the age of AI, someone had to shake the system. Someone had to say what too many founders and investors already know but won’t admit:
We’re playing small in a world that’s building big.
It’s time to stop just consuming tech—and start creating it.
