In a recent conversation with The Hindu BusinessLine, Indian-American entrepreneur and TiE (The Indus Entrepreneurs) founder Kanwal Rekhi emphasised that profitability isn’t just a financial outcome but a core measure of a startup’s efficiency and independence. For Rekhi, who built the Silicon Valley network TiE and has backed companies across India and the U.S., profitability signals that a business can sustain itself without perpetual external capital — a declaration of operational strength rather than mere survival.

Rekhi highlighted that burning investor money without a clear path to profitability often masks weak unit economics and inefficient execution, a critique of the “growth-at-all-costs” mindset that dominated earlier startup cycles. He recalls his own entrepreneurial journey, where even in the early days of Excelan he focused on building a viable, profitable enterprise. For him, profitability means a startup truly produces more than it consumes, freeing it from dependence on market volatility or capital flows.

Beyond profit margins, Rekhi’s broader message to founders is clear: build businesses grounded in real value creation, strong fundamentals and disciplined execution. In his view, efficiency demonstrated through profitability ultimately drives credibility with customers, investors and the market — and ensures long-term survival and impact.