A recent study titled “Driving the next phase of sustainable growth for Indian startups in 2023 and beyond,” conducted by SAP India in collaboration with Zinnov Digital, revealed that Indian startups adopting technology platforms from global software enterprises have experienced significant revenue growth and increased valuations. The study focused on startups in enterprise tech, health tech, retail, logistics, and AutoTech sectors that utilized enterprise-level applications.

Indian startups today require adequate tech infrastructure to help them diversify business, scale up operations, and acquire and retention of the right talent,” said Sanket Deodhar, Vice President- Digital Natives and Startups, SAP India. According to the findings, around 80% of the surveyed startups reported a substantial increase in revenue after implementing enterprise technology solutions, leading to a boost in valuations. Key benefits highlighted by the startups included improved top-line acceleration, bottom-line control, quick revenue recognition, and better handling of complex billing based on contracts and differentiated service lines.

The study revealed that 68% of respondents witnessed robust revenue growth after adopting enterprise-level applications, prompting them to plan increased spending on such applications by more than 15% in the current year. Automation and standardization of processes across divisions with faster customizations emerged as significant benefits of implementing enterprise-level applications. Startups also showed a growing interest in adopting tech across the public and private cloud. The study indicated a 2X increase in the adoption of tech across the public cloud and about a 50% increase in adoption for private cloud usage. This trend suggests a high focus on moving workloads to the cloud among startups.

Sanket Deodhar, Vice President of Digital Natives and Startups at SAP India, emphasized the importance of tech infrastructure for startups to diversify their business, scale up operations, and attract and retain talent. Despite the ongoing funding challenges and dynamic market conditions, Indian startups continue to thrive, and investments are expected to remain steady for high-performing startups in the coming years.

Sidhant Rastogi, Managing Partner at Zinnov Management Consulting, expressed optimism that the right technology adoption and organizational enhancements can help startups navigate economic slowdowns caused by recessions and other macroeconomic factors in the year 2023 and beyond. As we enter 2023, we remain optimistic that investment in the right technology and organizational augmentation can help start-ups navigate the economic slowdown caused by the recession and other macroeconomic factors,” said Sidhant Rastogi, Managing Partner at Zinnov Management Consulting.