India’s Startup Ecosystem: Embracing Technology for Growth and Sustainability
Advanced Technologies Drive Innovation
A recent report by SAP India and Dun & Bradstreet has shed light on the significant trend of Indian startups investing in advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and blockchain. According to the report, over 77 per cent of Indian startups are actively incorporating these technologies into their business models.
This trend highlights the pivotal role of technology in shaping the future of Indian entrepreneurship. Sanket Deodhar, Vice-President and Head of Digital Natives at SAP Indian Subcontinent, emphasized that technology remains a “cornerstone and key differentiator” for startups aiming to achieve sustainable business models and improved financial performance.
Shifting Focus to Unit Economics
The report also highlights a shift in focus among startups from Gross Merchandise Value (GMV) to Gross Margin (GM). Eighty-five per cent of startups now view unit economics as a clear path to profitability and enhanced valuation.
Furthermore, 79 per cent of startups consider the adoption of enterprise applications integrated with new-age technologies as essential for scaling and improving unit economics.
Geographical Diversification of India’s Tech Startup Scene
India’s startup landscape continues to flourish, with the country securing the third position in the global startup ecosystem. The report reveals that Tier II and Tier III cities have emerged as significant innovation hubs, with 40 per cent of total tech startups originating from these areas.
Cities such as Chandigarh, Jaipur, Madurai, Indore, and Kochi, among others, now host 15 per cent of India’s tech skill pool, indicating a more distributed growth pattern across the country.
Newly Founded Startups Embracing DeepTech
The report also reveals that 25 per cent of newly founded tech startups in 2023 were already utilising DeepTech, signaling a strong inclination towards cutting-edge innovations from the outset.
Conclusion
As Indian startups continue to leverage technology for growth and sustainability, the country’s position as a global tech powerhouse seems set to strengthen further. This trend not only promises to drive economic growth but also positions India at the forefront of technological innovation on the world stage.
FAQs
Q: What percentage of Indian startups are investing in advanced technologies?
A: Over 77 per cent of Indian startups are actively investing in advanced technologies such as AI, ML, IoT, and blockchain.
Q: What is the focus of Indian startups shifting to?
A: Startups are shifting their focus from Gross Merchandise Value (GMV) to Gross Margin (GM), with 85 per cent viewing unit economics as a clear path to profitability and enhanced valuation.
Q: Which cities are emerging as innovation hubs for Indian startups?
A: Tier II and Tier III cities such as Chandigarh, Jaipur, Madurai, Indore, and Kochi are emerging as significant innovation hubs for Indian startups.
Q: What percentage of newly founded tech startups are utilising DeepTech?
A: Twenty-five per cent of newly founded tech startups in 2023 were already utilising DeepTech.
