Mumbai, Sept. 26 -- Investors have historically underestimated the total addressable market that Indian startups can disrupt, often failing to envision the scale companies can achieve in India, Rajan Anandan, managing director at Peak XV Partners, told Mint in an interview.

"I think all of us in India, including us, underestimate how big something can get here. A decade ago, if a consumer brand scaled to Rs.100 crore, everybody said 'wow'. Now, Rs.100 crore is nothing - people ask if it can get to Rs.1,000 crore or even Rs.8,000 crore. A decade from now, we'll be talking about Rs.10,000-crore companies," he said.

Anandan said every decade in India brings a 10-fold jump, which makes it difficult for any investor to envision outcomes. "If...