Indian Startups Push Back on Remote Work Despite Modi’s Advice
Indian startup team collaborates in the office, with PM Modi on TV in the background.
Key Highlights
Despite PM Modi’s advisory, Indian startups are largely resisting remote work, citing concerns over productivity, collaboration, and company culture.
Indian Startups Opt Against Remote Work Amid Geopolitical Concerns
Prime Minister Narendra Modi’s recent suggestion for companies to consider work-from-home (WFH) arrangements in light of the escalating West Asia conflict has prompted a mixed response across India’s corporate landscape. While larger IT firms are contemplating a shift to remote operations, the burgeoning startup ecosystem largely remains opposed to reverting to pandemic-era work models. This reluctance stems from a deeply held belief among founders that prolonged remote work negatively impacts productivity, stifles collaboration, and erodes company culture – critical elements for the agile and fast-paced nature of startups.
The Productivity Dilemma of Remote Work for Startups
Startup founders frequently cite a slowdown in operations as a primary concern when discussing WFH. Unlike established IT giants with robust, pre-existing processes, startups rely on speed, momentum, and seamless collaboration to drive execution. Many founders recall the challenges faced during the extended remote work periods of the Covid-19 pandemic, where accountability, work-life boundaries, and overall output were significantly affected. A SaaS founder, preferring anonymity, stated, “I don’t think we should advocate WFH. We lost all momentum when WFH happened earlier. Startups work on energy, momentum and collaboration.” This sentiment is echoed by others who emphasize that even a temporary shift to remote work necessitates in-person collaboration to maintain critical momentum, leading some to prefer a hybrid model over a fully remote setup.
Declining Throughput and Execution Challenges
The experience during 2020 and 2021, when startups were compelled to operate remotely for extended durations, has left a lasting impression. Founders report a significant decline in overall team throughput and output during these periods. The difficulty in tracking productivity and the sharp rise in coordination costs across dispersed teams made operations more cumbersome. An agritech startup founder noted, “We suffered from poor output during the pandemic. WFH works well for a couple of weeks and then the overall team output starts dipping significantly. That’s been our experience. We cannot compromise business output.” This firsthand experience reinforces the preference for in-office operations to ensure consistent business performance and efficient execution, which is paramount for startups navigating competitive markets.
The Battle to Re-establish Office Culture and Presence
Beyond productivity concerns, startup leaders are wary of the logistical and cultural challenges associated with reintroducing remote work. Reversing the ingrained habits and expectations developed over nearly two years of remote flexibility has proven to be a formidable task. had grown accustomed to shorter commutes, flexible schedules, and location independence. Forcing a return to the office after such a prolonged period of WFH often leads to resistance and can undermine the company culture that founders have strived to rebuild. Furthermore, many startups have made substantial investments in their physical office spaces and collaborative infrastructure, making a widespread shift back to remote work financially counterintuitive and operationally disruptive.
Financial Implications and Strategic Considerations
The financial implications of enforcing a WFH policy are also a significant deterrent for many startups. Numerous companies are currently bound by long-term office leases, making it difficult to downscale physical infrastructure. Moreover, enabling a fully remote workforce often incurs additional costs, including reimbursements for home office setups, enhanced IT support, and other employee welfare measures. A marketplace startup leader highlighted the loss of efficiency: “Startups are famous for making quick decisions. Someone heard in the meeting room, and things got executed. Now when people do WFH, the whole efficiency goes away. Startups are on a scale journey, a WFH will have a severe impact, unlike in big IT companies, where processes are already set.” This highlights how the inherent operational models of startups are often misaligned with the demands of remote work.
Cautious Outlook and Talent Retention Strategies
While the majority of Indian startups are hesitant to embrace a full remote work model, many are adopting a wait-and-see approach, developing contingency plans in case geopolitical tensions escalate. Some companies are pausing non-essential travel and closely monitoring the evolving situation. However, a few exceptions exist, with companies like Bengaluru-based Veerloop.io opting for a complete WFH setup to prioritize employee safety and flexibility. Ankit Sarawagi, CFO of Verloop.io, stated, “… We are looking to completely move to the WFH setup. The larger priority right now is maintaining operational continuity while ensuring employees have the flexibility to work in a manner that feels safe and practical. Like many new-age organisations, the focus is less on rigid formats and more on adapting responsibly to evolving circumstances.” Additionally, some venture studios are encouraging their portfolio companies to offer flexibility to employees as a talent retention strategy, emphasizing that talent remains the most critical asset for startups. Despite these varied approaches, the prevailing sentiment suggests an office-first mindset is likely to persist within the Indian startup ecosystem for the foreseeable future.