Mumbai: According to a report published on Thursday, more than 77 percent of Indian startups are currently investing in cutting-edge technologies like blockchain, artificial intelligence (AI), machine learning, and the Internet of Things.
The trend underscores the rapid technological adoption and innovation across the Indian startup ecosystem, now ranked third globally, following the US and China, according to the report by SAP India, in collaboration with Dun & Bradstreet.
Another significant finding is the emergence of tier 2 and 3 cities as innovation hubs, where 40 per cent of tech startups originate, leveraging local talent and cost advantages.
Cities like Chandigarh, Jaipur, Madurai, Indore, Kochi, Warangal, Hubli, Raipur, Visakhapatnam and Guwahati, among others, host 15 per cent of the country’s tech skill pool.
As per the study, India’s position as a prominent startup hub in the world has been cemented by its technological advancements, which are bolstered by strong corporate governance and a favourable legal framework.
“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,” said Sanket Deodhar, VP and Head of Digital Natives, SAP Indian Subcontinent.
Roughly 79 percent of start-ups think that expanding and enhancing unit economics depend on implementing corporate apps coupled with cutting-edge technology like AI.
In a poll, about 72 percent of startups stated that they own or plan to purchase cutting-edge technologies.
Additionally, as per the report, about 85 percent of companies think that unit economics offers a straightforward route to increased valuation and profitability.
“India’s startup ecosystem is thriving, fueled by a favourable regulatory environment, a growing middle class, and a tech-savvy youth population. With almost 3 lakh startups and 113 unicorns across diverse sectors, India ranks third globally in its startup ecosystem,” said Avinash Gupta, Managing Director and CEO–India, Dun & Bradstreet.
