‘Why pay in dollars?’: Startup expert urges founders to rethink foreign tech subscriptions
Building a startup in your 20s can be exciting—but without smart financial planning, it’s easy to burn through cash fast. Many early-stage founders get caught in common traps like unused cloud services, overdependence on free credits, or paying in foreign currency without realising the long-term impact.,
- Jul 23, 2025,
- Updated Jul 23, 2025 8:16 PM IST
Over 80% of startups in India fail within their first five years, often due to poor financial planning and a lack of cost control. Young founders, especially in their 20s, are prone to chasing growth without paying enough attention to where their money is going. But building a financially sustainable business starts with getting the basics right.
One of the biggest pitfalls is overdependence on free credits or tools that seem “cheap” initially. According to Manoj Dhanda, Founder & CTO of Utho Cloud, this leads to long-term instability if founders don’t reassess their tools and spending regularly.
1. Don’t pay for what you don’t use
A common trap for early-stage founders is failing to shut down test environments or demo servers after proof-of-concept stages. These unused resources continue to rack up charges silently, especially on hyperscale cloud platforms that bill by usage in USD. “Young teams often hand over tech deployment to others and forget to audit. Without checks, costs snowball,” says Dhanda.
Routine audits of your infrastructure can uncover services that are no longer needed. For startups bootstrapping or working with limited investor capital, even minor leaks in spending can quickly eat into the runway.
2. Free credits come with hidden costs
Many cloud and SaaS platforms offer generous free credits to attract startups. While tempting, they often create a false sense of affordability. Once the honeymoon period ends and credits expire, startups find themselves staring at heavy monthly bills.
But the real cost goes beyond money. Integrating tools takes time, training teams, setting up workflows, and storing sensitive data. Switching away becomes expensive and disruptive. That’s why Dhanda recommends asking, “What will this cost me in month four, not just the first month?”
Quarterly reviews of your tech stack help identify redundant tools. Startups that conduct regular reviews often cut their costs by 30% by avoiding tools that don’t scale well or serve evolving needs.
3. Indian platforms can offer better value
When it comes to tech tools, most founders instinctively go for big global names. But that’s not always smart, especially if you’re building in India for Indian customers. Today, many Indian platforms provide enterprise-grade performance, reliable hosting in top-tier data centers, and crucially—billing in INR.
Why does that matter? Because foreign currency billing means your monthly bill is exposed to exchange rate volatility. A 3–5% dollar jump can hit your budget hard.
“A tool that costs ₹250 locally might cost ₹1,500 on an international platform,” explains Dhanda. “Why pay in dollars when your business earns and spends in rupees?”
Local platforms not only offer cost stability but also faster support and better tax compliance, especially for startups navigating GST.
Before locking into any platform, founders should compare costs, features, support, and future viability. Visit data centers if needed. Ask questions. “Follow logic, not the crowd,” says Dhanda.
Over 80% of startups in India fail within their first five years, often due to poor financial planning and a lack of cost control. Young founders, especially in their 20s, are prone to chasing growth without paying enough attention to where their money is going. But building a financially sustainable business starts with getting the basics right.
One of the biggest pitfalls is overdependence on free credits or tools that seem “cheap” initially. According to Manoj Dhanda, Founder & CTO of Utho Cloud, this leads to long-term instability if founders don’t reassess their tools and spending regularly.
1. Don’t pay for what you don’t use
A common trap for early-stage founders is failing to shut down test environments or demo servers after proof-of-concept stages. These unused resources continue to rack up charges silently, especially on hyperscale cloud platforms that bill by usage in USD. “Young teams often hand over tech deployment to others and forget to audit. Without checks, costs snowball,” says Dhanda.
Routine audits of your infrastructure can uncover services that are no longer needed. For startups bootstrapping or working with limited investor capital, even minor leaks in spending can quickly eat into the runway.
2. Free credits come with hidden costs
Many cloud and SaaS platforms offer generous free credits to attract startups. While tempting, they often create a false sense of affordability. Once the honeymoon period ends and credits expire, startups find themselves staring at heavy monthly bills.
But the real cost goes beyond money. Integrating tools takes time, training teams, setting up workflows, and storing sensitive data. Switching away becomes expensive and disruptive. That’s why Dhanda recommends asking, “What will this cost me in month four, not just the first month?”
Quarterly reviews of your tech stack help identify redundant tools. Startups that conduct regular reviews often cut their costs by 30% by avoiding tools that don’t scale well or serve evolving needs.
3. Indian platforms can offer better value
When it comes to tech tools, most founders instinctively go for big global names. But that’s not always smart, especially if you’re building in India for Indian customers. Today, many Indian platforms provide enterprise-grade performance, reliable hosting in top-tier data centers, and crucially—billing in INR.
Why does that matter? Because foreign currency billing means your monthly bill is exposed to exchange rate volatility. A 3–5% dollar jump can hit your budget hard.
“A tool that costs ₹250 locally might cost ₹1,500 on an international platform,” explains Dhanda. “Why pay in dollars when your business earns and spends in rupees?”
Local platforms not only offer cost stability but also faster support and better tax compliance, especially for startups navigating GST.
Before locking into any platform, founders should compare costs, features, support, and future viability. Visit data centers if needed. Ask questions. “Follow logic, not the crowd,” says Dhanda.