70% of Startups Believe Enterprise Technology Propels Hypergrowth And Better Valuations: Study As per the report, over 80% of startups in the enterprisetech, healthtech, retail, and logistics and autotech sectors have reported a substantial increase in revenue, underlining the significant positive impact of enterprise applications on startup performance and success
By Teena Jose
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SAP India, in collaboration with Zinnov Digital, has launched a new research report revealing that Indian startups are increasingly seeing enhanced benefits by adopting a robust digital core on the cloud. It stated that over 80% of startups in the enterprisetech, healthtech, retail, and logistics and autotech sectors have reported a substantial increase in revenue, underlining the significant positive impact of enterprise applications on startup performance and success.
"Indian startups today require adequate tech infrastructure to help them diversify business, scaling up operations and acquisition and retention of the right talent. Mission-critical Enterprise Resource Planning (ERP) systems on cloud are powerful enablers that provide valuable insights and direction to navigate any challenges, and accomplish their goals, including attracting investors, fair valuations and retaining a competitive edge," said Sanket Deodhar, vice-president- Digital Natives and Startups, SAP India.
Titled 'Driving the next phase of sustainable growth for Indian Startups in 2023 and beyond,' the study of 115 startups also suggests that startups will continue to invest in enterprise technology platforms, driven by their proven ability to deliver business outcomes and ROI.
Diving deeper into the ecosystem, the report showcased some interesting findings. It stated 74% of startups in India have reported direct benefits from implementing enterprise applications, whereas 24% of startups believe that achieving maturity in their business model, driven by robust technological capabilities and scalable operations, plays a crucial role in attracting investors.
The report then discussed the challenges startups are facing. It revealed that despite the funding winter and dynamic market conditions, Indian startups continue to grow and there is no sign of investments slowing down for high-performing startups in the coming years. Additionally, 81% of startups reported customer sentiment as one of their biggest business concerns, and 70% of respondents noted that Partner evaluation and lack of in-house knowledge to manage remain the top challenges for startups while implementing enterprise application solutions.
"In 2022, Indian startups faced significant challenges due to market headwinds and reduced valuations. 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. By doing so, they can ramp up valuations and revenue and achieve sustained growth," said Sidhant Rastogi, managing partner, Zinnov Management Consulting.
