Why Shutting a 100 Crore Business Makes Sense

Ankur Warikoo is shutting down his profitable course business. Discover the psychology and financial reasoning behind this counterintuitive move.
Subham Malakar
Why Shutting a 100 Crore Business Makes Sense


You built a business that makes ₹25 crore in profit every year. Would you shut it down? Most people wouldn't. But Ankur Warikoo just did. On May 15, 2026, the well-known Indian entrepreneur and content creator announced he is closing his online courses business—a venture that enrolled 5 lakh students, generated ₹100 crore in sales, and delivered ₹25 crore in profits over five years.[reference:0]

Warikoo's announcement on X (formerly Twitter) sent shockwaves through India's creator economy. "We've grown beyond what I could have imagined since we started in 2020," he wrote. "But it makes no sense to continue it."[reference:1]

Quick Summary
  • Main takeaway: A profitable ₹100 crore online courses business is being voluntarily shut down by its founder, Ankur Warikoo.
  • Second insight: The primary reason cited is the massive disruptive impact of Artificial Intelligence (AI) on online education.
  • What matters: This event signals a potential shift for the creator economy and raises important questions about the long-term value of digital assets.

The Counterintuitive Math of Knowing When to Quit

Warikoo's decision appears irrational on the surface. Why walk away from a business that's not just profitable, but has ₹25 crore in annual profits? This is where the hidden psychological bias comes into play. Most entrepreneurs suffer from "escalation of commitment"—they double down on failing ventures. But Warikoo is doing the opposite with a successful one. He's demonstrating a financially sophisticated understanding that past success is not always a reliable indicator of future returns.

The key clue to his reasoning lies in his response to a single question on X. When a user asked, "AI impact?" Warikoo replied with a single, powerful word: "huge."[reference:2] This suggests he sees the rapid rise of AI tools as an existential threat to the business model of paid online courses. Why pay for a course when an AI can generate a personalized curriculum, answer questions instantly, and adapt to your learning style at a fraction of the cost?

By the Numbers
₹100 Cr
Total Sales
₹25 Cr
Total Profits
5 Lakhs
Total Students
2020-2026
Years in Operation
Financial Tradeoff
Continuing the Business
  • Short-term profit: ₹25 crore/year
  • Long-term risk: AI disruption
  • Conclusion: Uncertain future value
Shutting Down
  • Opportunity cost: Forgone ₹25 crore/year
  • New focus: Unknown next venture
  • Conclusion: Freedom from legacy liability

This move is a masterclass in proactive adaptation. Warikoo isn't waiting for his business to bleed. He's closing the books while the numbers are still green. This approach is rare because it runs counter to human nature, which values current income more than potential future loss. As one financial observer noted, the decision to understand why even smart investors lose money often comes down to an inability to recognize when a once-good investment has run its course.

Practical Takeaway for Your Financial Life

For the average person, Warikoo's decision offers a powerful lesson in evaluating your own "businesses"—your job, your side hustle, or even a financial investment. It's easy to become emotionally attached to a source of income, especially one that has served you well. But ask yourself: Is the future of this income stream as secure as its past?

Pro Tip
Most people miss this: regularly stress-test your primary income source. Is it being disrupted by technology, changing markets, or new regulations? The best time to pivot or build a new skill is when your current income is still strong, not when it's collapsing.

This doesn't mean quitting your job tomorrow. But it does mean staying intellectually honest about the value you provide. Warikoo saw the tide going out on his course business model and decided to swim to shore on his own terms. You can apply the same principle by continuously upskilling, diversifying your income streams, and being brave enough to sunset a successful side project if the market fundamentals are shifting against it.

Frequently Asked
Many on the internet speculate it could be a "marketing hook" for a new launch.[reference:3] However, Warikoo has also strongly indicated that AI is a "huge" factor, lending credence to the serious strategic reasoning behind the decision.
This is a concern that has been raised. Warikoo addressed this by stating he has "news" for them and encouraged them to join his live session on May 16 for details.[reference:4]
The core lesson is the importance of avoiding the "sunk cost fallacy" and being honest about future trends. Don't let past success blind you to a changing landscape. Be willing to pivot or let go of a good thing to make room for a potentially better one.
Not entirely, but it is facing significant disruption. The "generalist" paid course model may struggle against free, personalized AI-generated learning. The future likely belongs to highly specialized, community-driven, or certification-based learning that AI cannot easily replicate.

Ankur Warikoo's decision to shutter a ₹100 crore business is a rare glimpse into the mind of someone who values future potential over past success. It's a financial move that prioritizes strategic retreat over ego-driven perseverance. Whether you have a side hustle, a primary career, or an investment portfolio, his example encourages a crucial habit: periodically ask yourself if what you're doing still makes sense, or if you're just continuing because it always has.

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