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Startups use AI, omnichannel push to expand globally, reach deeper locally
Startups use AI, omnichannel push to expand globally, reach deeper locally

Business Standard

time9 hours ago

  • Business
  • Business Standard

Startups use AI, omnichannel push to expand globally, reach deeper locally

As India's startup sector enters a new phase of growth, a wave of emerging companies is turning to artificial intelligence, omnichannel distribution and the creator economy to reach smaller domestic markets and expand globally. To mark World MSME Day, Meta has released a report commissioned from consulting firm Alvarez & Marsal India. The study draws on insights from interviews with 100 high-growth startups across the country. It identifies six key levers expected to shape the next chapter of Indian entrepreneurship. These include AI adoption, cross-border expansion, omnichannel strategies, deeper reach into Tier 2 and Tier 3 cities, category diversification and creator-led brand building. 'In today's dynamic times, startups that think smart and act fast to evolve will lead the charge,' said Sandhya Devanathan, Vice-President, India and South East Asia, Meta. 'At Meta, we're proud to be partners in this journey, equipping startups with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact.' Himanshu Bajaj, Managing Director and Head – Alvarez & Marsal India and GCC, noted that he is seeing a significant shift in how Indian startups think about scale — not just for pursuing growth but building more sustainable businesses that focus on value creation. 'AI, tiered expansion and omnichannel models are no longer future bets — they're foundational to execution today,' said Bajaj. 'What stands out is how early-stage startups are applying these levers with surprising sophistication.' Over 70 per cent of startups are now integrating AI across core business functions. 'We leveraged these cutting-edge tools to optimise our marketing campaigns, and the results have been nothing short of phenomenal,' said Shrawan Daga, Founder, Krishna's Herbal & Ayurveda. About 67 per cent of small firms have adopted omnichannel models to address modern customer journeys that span online discovery and offline purchase. 'Attributing online spends to walk-ins and offline conversions is the most critical aspect to driving an efficient omnichannel business while continuing to use digital as the primary advertising channel,' said Ayushi Gudwani, Founder, FS Life. The report said nearly all startups are expanding into Tier 2 and 3 markets to cater to high demand and existing supply gaps. 'India's next billion consumers are not waiting to catch up — they're leapfrogging,' said Swagat Sarangi, Co-founder, Smytten. 'In Tier 2 and 3 markets, relevance isn't about scaling down your offering, it's about showing up with empathy, accessibility and trust.' About 52 per cent of small firms are expanding cross-border, tapping into large addressable markets and global demand for Indian-origin products. The United States, the UAE and the United Kingdom emerged as the top export markets. 'We've successfully expanded our global footprint, achieving a remarkable 30 per cent higher ROI in new markets,' said Aakriti Rawal, Co-founder, House of Chikankari. According to the report, 84 per cent of startups have diversified beyond their core offerings. They are leveraging synergies across product lines, customer cohorts and distribution channels. 'As Noise expands globally and enters new categories, our focus is on building performance-oriented smart tech that takes the 'Make in India' story to the world,' said Gaurav Khatri, Co-founder and CEO, Noise. The report also finds that 88 per cent of brands now partner with creators — including niche influencers and celebrities — to build community-led storytelling. 'Working with creators allows us to tell real, relatable stories that build trust and emotional resonance,' said Suramya Jain, Co-founder, RAS.

Over 70% of Indian startups integrating AI across core business functions: Meta report
Over 70% of Indian startups integrating AI across core business functions: Meta report

Time of India

timea day ago

  • Business
  • Time of India

Over 70% of Indian startups integrating AI across core business functions: Meta report

Over 70% of Indian startups are now integrating AI across core business functions and 67% have adopted omnichannel models to address modern customer journeys that span online discovery and offline purchase, a Meta-commissioned report said on India's startup ecosystem accelerates into its next growth phase, emerging businesses are reshaping their growth through digital innovation with AI, omnichannel strategies, creators, and access to tier 2 and 3 markets and equally to cross-border geographies, said the report by Meta in collaboration with leading global professional services firm Alvarez & Marsal India. The findings showed that India's startup ecosystem has witnessed exponential growth over the last decade, with a surge in early-stage funding, digital penetration, and consumer affluence across metros and non-metro regions. "In today's dynamic times, startups that think smart and act fast to evolve will lead the charge. At Meta, we're proud to be partners in this journey, equipping them with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact," said Sandhya Devanathan, Vice President, India and South East Asia, Meta. Technologies such as AI are further fueling the growth of startups and MSMEs in the country. "We're seeing a significant shift in how Indian startups think about scale-not just for pursuing growth but building more sustainable businesses that focus on value creation," said Himanshu Bajaj, Managing Director and Head - Alvarez & Marsal India and GCC. AI is becoming a game-changer for marketers. In marketing alone, 87% of AI adopters reported a 30% improvement in cost per acquisition (CPA). Sectors such as healthcare , edtech and beauty are leading in AI maturity leveraging automation for customer service, predictive analytics, and personalisation, the report found. Tier 2 and 3 markets are becoming the new battlegrounds for scale. Nearly all surveyed startups are expanding into these regions, driven by demand, digital accessibility, and distribution ease. Service-based startups are entering these markets nearly a year earlier than product counterparts, using WhatsApp, vernacular content, and regional influencers to break through. Going global is no longer reserved for mature players. The study shows 52% of startups are expanding cross-border, largely driven by larger total addressable markets (TAM) and increasing global appetite for Indian-origin offerings. The US, the UAE and the UK emerged as the top export markets, said the report.

Over 70% Of Indian Startups Integrating AI Across Core Business Functions: Meta Report
Over 70% Of Indian Startups Integrating AI Across Core Business Functions: Meta Report

India.com

timea day ago

  • Business
  • India.com

Over 70% Of Indian Startups Integrating AI Across Core Business Functions: Meta Report

New Delhi: Over 70 per cent of Indian startups are now integrating AI across core business functions and 67 per cent have adopted omnichannel models to address modern customer journeys that span online discovery and offline purchase, a Meta-commissioned report said on Friday. As India's startup ecosystem accelerates into its next growth phase, emerging businesses are reshaping their growth through digital innovation with AI, omnichannel strategies, creators, and access to tier 2 and 3 markets and equally to cross-border geographies, said the report by Meta in collaboration with leading global professional services firm Alvarez & Marsal India. The findings showed that India's startup ecosystem has witnessed exponential growth over the last decade, with a surge in early-stage funding, digital penetration, and consumer affluence across metros and non-metro regions. 'In today's dynamic times, startups that think smart and act fast to evolve will lead the charge. At Meta, we're proud to be partners in this journey, equipping them with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact,' said Sandhya Devanathan, Vice President, India and South East Asia, Meta. Technologies such as AI are further fueling the growth of startups and MSMEs in the country. "We're seeing a significant shift in how Indian startups think about scale—not just for pursuing growth but building more sustainable businesses that focus on value creation,' said Himanshu Bajaj, Managing Director and Head – Alvarez & Marsal India and GCC. AI is becoming a game-changer for marketers. In marketing alone, 87 per cent of AI adopters reported a 30 per cent improvement in cost per acquisition (CPA). Sectors such as healthcare, edtech and beauty are leading in AI maturity leveraging automation for customer service, predictive analytics, and personalisation, the report found. Tier 2 and 3 markets are becoming the new battlegrounds for scale. Nearly all surveyed startups are expanding into these regions, driven by demand, digital accessibility, and distribution ease. Service-based startups are entering these markets nearly a year earlier than product counterparts, using WhatsApp, vernacular content, and regional influencers to break through. Going global is no longer reserved for mature players. The study shows 52 per cent of startups are expanding cross-border, largely driven by larger total addressable markets (TAM) and increasing global appetite for Indian-origin offerings. The US, the UAE and the UK emerged as the top export markets, said the report.

Over 70% of Indian startups integrating AI across core business functions: Meta report
Over 70% of Indian startups integrating AI across core business functions: Meta report

Time of India

timea day ago

  • Business
  • Time of India

Over 70% of Indian startups integrating AI across core business functions: Meta report

Over 70% of Indian startups are now integrating AI across core business functions and 67% have adopted omnichannel models to address modern customer journeys that span online discovery and offline purchase, a Meta-commissioned report said on India's startup ecosystem accelerates into its next growth phase, emerging businesses are reshaping their growth through digital innovation with AI, omnichannel strategies, creators, and access to tier 2 and 3 markets and equally to cross-border geographies, said the report by Meta in collaboration with leading global professional services firm Alvarez & Marsal findings showed that India's startup ecosystem has witnessed exponential growth over the last decade, with a surge in early-stage funding, digital penetration, and consumer affluence across metros and non-metro regions."In today's dynamic times, startups that think smart and act fast to evolve will lead the charge. At Meta, we're proud to be partners in this journey, equipping them with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact," said Sandhya Devanathan, Vice President, India and South East Asia, such as AI are further fueling the growth of startups and MSMEs in the country."We're seeing a significant shift in how Indian startups think about scale-not just for pursuing growth but building more sustainable businesses that focus on value creation," said Himanshu Bajaj, Managing Director and Head - Alvarez & Marsal India and is becoming a game-changer for marketers. In marketing alone, 87% of AI adopters reported a 30% improvement in cost per acquisition (CPA).Sectors such as healthcare , edtech and beauty are leading in AI maturity leveraging automation for customer service, predictive analytics, and personalisation, the report 2 and 3 markets are becoming the new battlegrounds for scale. Nearly all surveyed startups are expanding into these regions, driven by demand, digital accessibility, and distribution ease. Service-based startups are entering these markets nearly a year earlier than product counterparts, using WhatsApp, vernacular content, and regional influencers to break global is no longer reserved for mature players. The study shows 52% of startups are expanding cross-border, largely driven by larger total addressable markets (TAM) and increasing global appetite for Indian-origin offerings. The US, the UAE and the UK emerged as the top export markets, said the report.

India's start-up ecosystem witnessed exponential growth over the last decade, with a surge in early-stage funding, digital penetration: Meta
India's start-up ecosystem witnessed exponential growth over the last decade, with a surge in early-stage funding, digital penetration: Meta

The Hindu

time2 days ago

  • Business
  • The Hindu

India's start-up ecosystem witnessed exponential growth over the last decade, with a surge in early-stage funding, digital penetration: Meta

India's start-up ecosystem has witnessed exponential growth over the last decade, with a surge in early-stage funding, digital penetration, and consumer affluence across both metros and non-metro regions, according to a report released by Meta in collaboration with professional services firm Alvarez & Marsal India on Friday morning. As India's startup ecosystem accelerates into its next growth phase, emerging businesses were reshaping their growth through digital innovation, said the study which identified six key levers of growth of India's startups such as: AI adoption, cross-border expansion, omnichannel presence, Tier 2/3 market expansion, category diversification, creator-led brand building. With AI becoming a game-changer for marketers, the report prepared based on conversations with 100 high-growth startups found that over 70% of startups were integrating artificial intelligence into their business operations. In marketing alone, 87% of AI adopters reported a 30% improvement in cost per acquisition. Sectors such as healthcare, edtech, and beauty were leading in AI maturity, leveraging automation for customer service, predictive analytics, and personalisation, it found. Sandhya Devanathan, Vice President, India and South East Asia, Meta said, 'In today's dynamic times, startups that think smart and act fast to evolve will lead the charge.' The report also outlined how 67% of startups have adopted omnichannel models, recognizing that modern consumer journeys often toggle between online and offline. Discovery typically starts with digital ads, creator-led Reels, or WhatsApp messages and ends in physical retail, particularly in high-involvement categories like fashion, home, and fitness, it further said. Himanshu Bajaj, Managing Director & Head – Alvarez & Marsal India and GCC said, 'We're seeing a significant shift in how Indian startups think about scale—not just for pursuing growth but building more sustainable businesses that focus on value creation.'' He further said, AI, tiered expansion, and omnichannel models were no longer future bets—they were foundational to execution today. ``What stands out is how early-stage startups are applying these levers with surprising sophistication,'' Mr. Bajaj added. According to the study, tier 2 and 3 markets are becoming the new battlegrounds for scale. Nearly all surveyed startups are expanding into these regions, driven by demand, digital accessibility, and ease of distribution. Service-based startups are entering these markets almost a year earlier than their product counterparts, using WhatsApp, vernacular content, and regional influencers to break through. The report also said going global was no longer reserved for mature players. The study showed 52% of startups were expanding cross-border, largely driven by larger total addressable markets (TAM) and increasing global appetite for Indian-origin offerings. USA, UAE, and the UK emerged as the top export markets.

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