At the News18 Rising Bharat Summit 2025, Saurabh Munjal, co-founder and CEO of Archian Foods, challenges the prevailing startup focus on India’s 15 crore taxpayers, highlighting the untapped potential of the broader 100 crore consumer market.
Rethinking India’s Consumer Demographics
During the News18 Rising Bharat Summit 2025 held in New Delhi, Saurabh Munjal, co-founder and CEO of Archian Foods—makers of the popular beverage Lahori Zeera—addressed a critical oversight in the Indian startup ecosystem. He pointed out that many entrepreneurs concentrate their efforts on the approximately 15 crore individuals who file income tax returns, thereby overlooking a vast segment of about 100 crore consumers residing in non-metro regions, collectively referred to as ‘Bharat’.
Munjal emphasized that these consumers possess significant disposable income and are willing to spend, often more so than their urban counterparts. He stated, “Bharat has far more (disposable) wealth (as a cohort) that they are ready to spend vis-à-vis the folks who are sitting in ACs and filing income tax returns.”
Lahori’s Strategic Approach to ‘Bharat’
Archian Foods has strategically targeted this broader consumer base by offering beverages at an affordable price point of ₹10. This approach aligns with the spending habits and preferences of consumers in Bharat, who seek value for money without compromising on quality.
Munjal noted that while many startups aim for the tax-paying demographic, his company recognizes the potential in serving the larger, underserved population. He remarked, “We feel ‘India’ is the 100 crore population who are not part of that cohort. And that is what we went after.”
Embracing Competition and Future Aspirations
The increasing interest of larger players in the value-priced beverage segment is seen by Munjal as a positive development that can expand the category and benefit the overall business landscape. He expressed confidence in Lahori’s position, stating, “We were the first movers in this category, and now everyone wants a slice of it. But that’s a good thing—when more players enter the space, the category grows, which is great for business.”BookMyShow
Looking ahead, Archian Foods aims to establish a pan-India presence within the next two years, further solidifying its commitment to reaching consumers across the nation.
The Broader Implications for Indian Startups
Munjal’s insights serve as a crucial reminder for startups to reassess their target markets. By focusing solely on the tax-paying segment, businesses may overlook a substantial portion of potential consumers in Bharat who are eager and capable of spending. Lahori’s success underscores the importance of understanding and catering to the diverse needs of India’s vast population, highlighting that true market potential lies beyond conventional metrics.
StartupByDoc Analysis
Saurabh Munjal’s perspective challenges the conventional wisdom prevalent among Indian startups. By highlighting the spending power of the broader 100 crore population, he underscores the need for businesses to look beyond the urban, tax-paying demographic. This approach not only opens up new avenues for growth but also aligns with the broader goal of inclusive economic development. Startups that recognize and act on this insight are likely to find untapped opportunities and achieve sustainable success in the Indian market.
