Are Over 70% of Indian Startups Really Integrating AI into Their Core Functions?
Click to start listening
Synopsis
A recent report by Meta reveals that over 70% of Indian startups are now integrating AI into their operations. This shift not only enhances efficiency but also fosters growth in tier 2 and 3 markets, as businesses embrace omnichannel strategies and prioritize sustainable value creation.
Key Takeaways
- 70% of Indian startups are integrating AI in core functions.
- 67% have adopted omnichannel models.
- Key sectors include healthcare, edtech, and beauty.
- Tier 2 and 3 markets are crucial for growth.
- 52% of startups are expanding globally.
New Delhi, June 27 (NationPress) More than 70% of Indian startups are now incorporating AI into their essential business operations, while 67% have embraced omnichannel approaches to navigate the contemporary customer journey, which includes both online exploration and offline purchases, as per a report commissioned by Meta released on Friday.
As India's startup landscape propels into its subsequent growth phase, emerging enterprises are transforming their trajectory through digital innovation utilizing AI, omnichannel models, content creators, and tapping into tier 2 and 3 markets, as well as international territories, according to the report by Meta in partnership with Alvarez & Marsal India, a prominent global professional services firm.
The findings reveal that India's startup ecosystem has experienced remarkable expansion over the past decade, characterized by a rise in early-stage funding, digital adoption, and increasing consumer wealth in both metropolitan and non-metropolitan areas.
“In today’s fast-paced environment, startups that strategize wisely and adapt swiftly will take the lead. At Meta, we are honored to be allies in this journey, providing them with advanced AI-driven tools to scale and transform their ambitious concepts into meaningful outcomes,” stated Sandhya Devanathan, Vice President, India and Southeast Asia, Meta.
Technologies like AI are further propelling the growth of startups and MSMEs throughout the nation.
“We are witnessing a notable transformation in how Indian startups perceive scaling—not merely for pursuing growth but for establishing more sustainable enterprises that prioritize value creation,” noted Himanshu Bajaj, Managing Director and Head – Alvarez & Marsal India and GCC.
AI is proving to be a transformative force for marketers. In marketing alone, 87% of those employing AI reported a 30% enhancement in cost per acquisition (CPA).
Industries such as healthcare, edtech, and beauty are at the forefront of AI advancement, leveraging automation for customer service, predictive analytics, and personalization, as reported.
Tier 2 and 3 markets are emerging as crucial frontiers for expansion. Almost all surveyed startups are venturing into these regions, motivated by demand, digital accessibility, and ease of distribution. Service-oriented startups are entering these markets nearly a year ahead of their product-focused counterparts, utilizing WhatsApp, local content, and regional influencers to make an impact.
Global expansion is no longer confined to established players. The research indicates that 52% of startups are pursuing cross-border growth, primarily motivated by larger total addressable markets (TAM) and a growing global interest in Indian-origin products. The US, UAE, and UK stand out as the leading export destinations, according to the report.
Point of View
It is clear that the integration of AI into India's startup framework is not just a trend but a necessity for sustainable growth. The adaptability to modern customer journeys through omnichannel strategies speaks volumes about the innovation and resilience of Indian entrepreneurs. This approach aligns with our commitment to fostering a robust entrepreneurial environment in the nation.
NationPress
27/06/2025
Frequently Asked Questions
What percentage of Indian startups are integrating AI?
Over 70% of Indian startups are incorporating AI into their core business functions, as revealed in a recent Meta-commissioned report.
What is the significance of omnichannel strategies?
Omnichannel strategies are crucial as they allow businesses to address modern customer journeys that include both online and offline experiences, enhancing customer engagement and satisfaction.
Which sectors are leading in AI adoption?
Sectors such as healthcare, edtech, and beauty are leading the way in AI maturity, utilizing automation for customer service, predictive analytics, and personalization.
How are startups approaching expansion into tier 2 and 3 markets?
Startups are strategically entering tier 2 and 3 markets by leveraging digital tools, local content, and regional influencers to meet growing demand and improve accessibility.
What regions are Indian startups targeting for cross-border expansion?
Indian startups are primarily targeting the US, UAE, and UK as their top export markets, driven by larger total addressable markets and increasing global demand for their offerings.
