As India's startup ecosystem enters a new phase of growth, businesses are increasingly turning to digital innovation. A report commissioned by Meta and conducted by Alvarez & Marsal India (A&M India) has identified six key levers driving this transformation: AI adoption, cross-border expansion, omnichannel presence, Tier 2/3 market expansion, category diversification, and creator-led brand building.
India's startup landscape has seen rapid growth over the past decade, driven by increased early-stage funding and digital penetration. Technologies like AI are playing a crucial role in this development. Sandhya Devanathan from Meta stated that startups must "think smart and act fast" to lead the charge in these dynamic times.
Himanshu Bajaj of Alvarez & Marsal noted a shift in how Indian startups approach scaling their businesses. He emphasized that AI and omnichannel models have become essential for execution today. The report reveals that over 70% of startups integrate AI into their operations, with significant improvements reported in marketing efficiency.
The study highlights that 67% of startups have adopted omnichannel strategies to cater to consumer journeys that span online and offline interactions. Ayushi Gudwani from FS Life stressed the importance of attributing online spending to offline conversions for an efficient business model.
Tier 2 and 3 markets are emerging as key areas for expansion due to growing demand and digital accessibility. Swagat Sarangi from Smytten pointed out the importance of empathy and trust in building brand loyalty in these regions.
Cross-border expansion is also on the rise, with 52% of startups exploring international markets such as the USA, UAE, and UK. Aakriti Rawal from House of Chikankari shared success stories of using Meta's tools for global growth.
Category diversification is another strategy being employed by startups to engage consumers further and explore new revenue streams. Gaurav Khatri from Noise discussed leveraging synergies across product lines while maintaining focus on performance-oriented technology.
Creator-led brand building is becoming increasingly popular among startups seeking trust and audience reach. Suramya Jain from RAS highlighted the impact of influencer marketing on their growth strategy.
The report provides a roadmap for founders and marketers focusing on sustainable scale through AI efficiency, creator-driven storytelling, or Bharat-first expansion strategies as they navigate India's evolving startup landscape.