Data Privacy Directly Impacts Indian AI Startup Valuations, Warns Legal Expert

21 Oct 2026, 3:31 pm · 1d ago · 1 min read · YourStory

Speaking at TechSparks 2026, Shivaarti Bajaj, Founding Managing Partner at RSD Bajaj Global Law Firm, warned that data privacy has become a critical valuation factor for Indian AI startups. Bajaj emphasized that startups building AI products are creating digital assets whose valuations can be significantly reduced without proper compliance, consent frameworks, and breach response mechanisms. Citing Yahoo’s $350 million acquisition discount following data breaches, she urged founders across D2C, edtech, and deep tech to audit data maps and vendor contracts. Regulatory oversight and investor diligence are increasingly penalizing poor data hygiene.