Nearly 80% of Indian startups investing in AI, other advanced technologies: Report
Almost 80% of the startups believe that adopting enterprise applications integrated with new-age technologies such as AI is essential for scaling and improving unit economics
In the age of digital disruption, 77% of the startups in India are investing in advanced technologies, including AI, ML, IoT, and blockchain, according to a study by SAP-Dun & Bradstreet.
The study titled, "Value Creation and Sustainable Growth: The Blueprint for Startup Profitability in India," said that startups have proactively integrated advanced technologies to achieve operational efficiency.
Almost 80% of the startups believe that adopting enterprise applications integrated with new-age technologies such as AI is essential for scaling and improving unit economics. Whereas 72% of startups already have or are looking to invest in new-age technologies.
85% of startups in the country said that unit economics is a clear path to profitability and enhancing valuation.
The report noted that Tier-2 and 3 cities have become innovation hubs. As many as 40% of total tech startups originate from these cities, the report added.
"Cities like Chandigarh, Jaipur, Madurai, Indore, Kochi, Warangal, Hubli, Raipur, Vishakhapatnam, and Guwahati, among others, host 15% of the country's tech skill pool," according to the study.
"The rising prominence of Tier II and Tier III cities as innovation hubs has further decentralized economic development. As we navigate the challenges of funding limitations and market volatility, start-ups must focus on unit economics and profitability to build sustainable and profitable enterprises," Avinash Gupta, Managing Director & CEO – India, Dun & Bradstreet said.
Several startups have adopted new-age technologies such as agritech startups have adopted AI-powered drones and IoT devices optimising farming practices, enhancing yield, and reducing labour costs. Fintech startups are using AI algorithms for credit scoring and risk assessment and also detecting fraud.
64% respondents of in the study said that the adoption of enterprise applications is key to measuring rapidly changing customer behavior and making strategic decisions to scale and improve unit economics.
