In an era defined by rapid technological advancement, Indian startups are leading the charge, with over 77 percent now harnessing the power of advanced technologies such as artificial intelligence (AI), machine learning (ML), the internet of things (IoT), and blockchain. This surge in technology adoption is a testament to the Indian startup ecosystem’s enormous growth, now recognized as the third largest globally, trailing only behind the US and China.
The findings, presented in a report by SAP India in conjunction with Dun & Bradstreet, paint a vivid picture of India’s dynamic startup landscape. Notably, the report highlights the growing significance of tier 2 and 3 cities as burgeoning hubs of innovation. Contributing to this movement are cities such as Chandigarh, Jaipur, Madurai, Indore, Kochi, Warangal, Hubli, Raipur, Visakhapatnam, and Guwahati. Together, these cities are home to 15 percent of the nation’s tech talent pool, demonstrating the decentralization of tech startup originations, with 40 percent now based outside the major metropolitan areas.
This distributed model of innovation is not only reshaping India’s startup ecosystem but also contributing to its recognition on the global stage as a vibrant nexus of entrepreneurship and technology. The emergence of this ecosystem is facilitated by strong corporate governance and a regulatory landscape conducive to growth and innovation.
[INSERT IMAGE]
“As companies shift their focus from GMV (gross merchandise value) to GM (gross margin) and seek to forge more sustainable business models with the help of transparent, trusted financial data, technology remains a cornerstone and a key differentiator for startups to achieve these business goals,” explained Sanket Deodhar, VP and Head of Digital Natives at SAP Indian Subcontinent.
The adoption of enterprise applications that integrate new-age technologies like AI is seen as essential by approximately 79 percent of startups for scaling operations and improving unit economics. Nearly 72 percent of the startups surveyed are either utilizing or planning to invest in new-age technologies, underlining the essential role of innovation in their growth trajectory.
Furthermore, about 85 percent of startups believe that focusing on unit economics is a definite pathway to profitability and enhanced valuation. This view underscores a strategic pivot towards efficiency and sustainability, moving beyond the traditional emphasis on growth at any cost.
“India’s startup ecosystem is thriving, fueled by a favorable regulatory environment, a burgeoning middle class, and a tech-savvy youth population. With almost 300,000 startups and 113 unicorns across diverse sectors, India ranks third globally in its startup ecosystem,” elucidated Avinash Gupta, Managing Director and CEO-India, Dun & Bradstreet.
The narrative of India’s startup landscape is one of resilience, adaptability, and innovation. As small cities rise to become new centers of tech-driven entrepreneurship, leveraging a rich pool of local talent and cost advantages, the Indian startup ecosystem is poised for unprecedented growth. Thus, with its finger firmly on the pulse of advanced technology, India continues to solidify its status as a global leader in the startup domain.
