Indian startups and Indian startup ecosystem are growing at a rapid pace. The landscape is going through a transformative era. It is learned that 77% of the startups are now investing in Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT) and blockchain. The shift was lately highlighted in a recent SAP India report in collaboration with Dun & Bradstreet. The report reveals the important role of advanced technologies in the Indian startup ecosystem.

Indian startups are shifting their focus to Gross Margin (GM). They initially had a focus on from Gross Merchandise Value (GMV). However, they now are emphasizing on profitability as well as sustainable business models.

Sanket Deodhar, Vice-President and Head of Digital Natives at SAP Indian Subcontinent, said that the technology remains a cornerstone and playing an important role as a key differentiator for the startups to achieve these business goals.

Indian startup ecosystem is currently robust. It is ranking third in the world equipped with 300,000 startups. 113 of these are unicorns. The shift towards unit economics marks a significant evolution in the business landscape. The adoption of enterprise applications integrated with advanced technologies such as AI and ML is seen as essential.

Moreover, investments in AI and related technologies are not just limited to metropolitan hubs. Tier II and Tier III cities emerged as innovation hotspots in 2023. These cities contributed 40% of the total tech startups. Chandigarh, Jaipur, Madurai, Indore, Kochi, Warangal, Hubli, Raipur, Vishakhapatnam, Guwahati and couple of more cities now host 15% of the country’s tech talent pool.

Meanwhile, the rise of DeepTech has added to the success. About 25% of the tech startups embraced it in 2023. It is enhancing operational efficiencies and also driving significant advancements in various sectors.