Quote of the Day by Rakesh Jhunjhunwala: ‘I don't think Indian e-commerce companies have an evolved business model’
Rakesh Jhunjhunwala (1960-2022) was a legendary Indian billionaire investor and stock trader often referred to as the “Big Bull” of India or the “Indian Warren Buffett”. He was a qualified Chartered Accountant who transformed a modest ₹5,000 investment in 1985 into a multibillion-dollar portfolio.
- Sep 4, 2026,
- Updated Sep 4, 2026 7:30 AM IST
"I don't think Indian e-commerce companies have an evolved business model,” a quote by Rakesh Jhunjhunwala, an Indian billionaire investor, stock trader and Chartered Accountant.
Rakesh Jhunjhunwala made this critical observation in the mid-2010s to emphasise that online retailers relied on investor-funded discounts rather than self-sustaining profits.
Who was Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala (1960-2022) was a legendary Indian billionaire investor and stock trader often referred to as the “Big Bull” of India or the “Indian Warren Buffett”. He was a qualified Chartered Accountant who transformed a modest ₹5,000 investment in 1985 into a multibillion-dollar portfolio.
At the time of his passing in August 2022, his net worth was estimated at $5.80 billion, making him one of the richest people in India. Shortly before his death, he co-founded Akasa Air, a low-cost Indian airline.
His portfolio was famous for long-term “multibagger” stocks, most notably Titan Company, where his early bet grew 400x over two decades.
He was a steadfast optimist regarding India's economic growth, famously stating, “The future of India is brighter than the sun”.
When was this quote said by Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala made this specific statement in December 2014 during a media interview.
He expanded significantly on this scepticism in February 2016 at the Retail Leadership Summit. During that event, he famously shared a stage with Flipkart co-founder Sachin Bansal and retail tycoon Kishore Biyani.
What does this quote mean?
Rakesh Jhunjhunwala’s critique meant that early Indian e-commerce companies were relying on artificial, investor-funded growth rather than building self-sustaining, profitable operations. From his perspective as a traditional value investor, a truly "evolved" business model must generate positive cash flow and prove its long-term viability through organic demand. Instead, these platforms were using billions of dollars in venture capital to heavily discount products, essentially "buying" customer loyalty.
Jhunjhunwala argued that this strategy created a false illusion of success; because the unit economics were deeply flawed and platforms lost money on nearly every transaction, the businesses remained entirely dependent on continuous cash injections.
"I don't think Indian e-commerce companies have an evolved business model,” a quote by Rakesh Jhunjhunwala, an Indian billionaire investor, stock trader and Chartered Accountant.
Rakesh Jhunjhunwala made this critical observation in the mid-2010s to emphasise that online retailers relied on investor-funded discounts rather than self-sustaining profits.
Who was Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala (1960-2022) was a legendary Indian billionaire investor and stock trader often referred to as the “Big Bull” of India or the “Indian Warren Buffett”. He was a qualified Chartered Accountant who transformed a modest ₹5,000 investment in 1985 into a multibillion-dollar portfolio.
At the time of his passing in August 2022, his net worth was estimated at $5.80 billion, making him one of the richest people in India. Shortly before his death, he co-founded Akasa Air, a low-cost Indian airline.
His portfolio was famous for long-term “multibagger” stocks, most notably Titan Company, where his early bet grew 400x over two decades.
He was a steadfast optimist regarding India's economic growth, famously stating, “The future of India is brighter than the sun”.
When was this quote said by Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala made this specific statement in December 2014 during a media interview.
He expanded significantly on this scepticism in February 2016 at the Retail Leadership Summit. During that event, he famously shared a stage with Flipkart co-founder Sachin Bansal and retail tycoon Kishore Biyani.
What does this quote mean?
Rakesh Jhunjhunwala’s critique meant that early Indian e-commerce companies were relying on artificial, investor-funded growth rather than building self-sustaining, profitable operations. From his perspective as a traditional value investor, a truly "evolved" business model must generate positive cash flow and prove its long-term viability through organic demand. Instead, these platforms were using billions of dollars in venture capital to heavily discount products, essentially "buying" customer loyalty.
Jhunjhunwala argued that this strategy created a false illusion of success; because the unit economics were deeply flawed and platforms lost money on nearly every transaction, the businesses remained entirely dependent on continuous cash injections.