365telugu.com online news,New Delhi, June 29, 2025: India’s burgeoning startup ecosystem is entering a new phase of growth, driven significantly by digital innovation, particularly the widespread adoption of Artificial Intelligence (AI), omnichannel strategies, and strategic expansion into Tier 2/3 cities and cross-border markets.
This was highlighted in a new report commissioned by Meta in collaboration with global professional services firm Alvarez & Marsal India (A&M India), released on the occasion of World MSME Day.
The report, based on in-depth conversations with 100 high-growth Indian startups, identifies six key growth levers: AI adoption, cross-border expansion, omnichannel presence, Tier 2/3 market expansion, category diversification, and creator-led brand building.
Key Findings from the Report..
- AI Integration is Soaring: Over 70% of Indian startups are now integrating AI across their core business functions. Specifically in marketing, 87% of AI adopters reported a remarkable ~30% improvement in cost per acquisition (CPA). Sectors like healthcare, edtech, and beauty are leading the charge in AI maturity, leveraging it for customer service automation, predictive analytics, and personalization.
- Omnichannel is the New Standard: A significant 67% of startups have embraced omnichannel models, recognizing that modern customer journeys seamlessly blend online discovery with offline purchases. Digital ads, creator-led content, and WhatsApp interactions often initiate the journey, culminating in physical retail, especially for high-involvement categories such as fashion and home goods.
- Tier 2/3 Markets, the Next Frontier: Nearly all surveyed startups are aggressively expanding into Tier 2/3 markets. This push is driven by high demand, increasing digital accessibility, and easier distribution. Service-based startups are entering these markets almost a year earlier than their product-focused counterparts, effectively utilizing WhatsApp, vernacular content, and regional influencers.
- Global Ambitions Rising: Going global is no longer exclusive to established players. The study reveals that 52% of startups are undertaking cross-border expansion, primarily motivated by larger total addressable markets (TAM) and a growing global demand for Indian-origin products. The USA, UAE, and the UK have emerged as the top export destinations.
Industry Voices on the Transformation:
Sandhya Devanathan, Vice President, India and South East Asia, Meta, emphasized the dynamic nature of the market: “In today’s dynamic times, startups that think smart and act fast to evolve will lead the charge. At Meta, we’re proud to be partners in this journey, equipping them with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact.”
Himanshu Bajaj, Managing Director & Head – Alvarez & Marsal India and GCC, highlighted the shift towards sustainable growth: “We’re seeing a significant shift in how Indian startups think about scale not just for pursuing growth but building more sustainable businesses that focus on value creation. AI, tiered expansion, and omnichannel models are no longer future bets they’re foundational to execution today.”
Startup founders also shared their experiences:
- Shrawan Daga, Founder, Krishna’s Herbal & Ayurveda, lauded Meta’s Advantage+ solutions, reporting “a significant increase in conversions, improved ad targeting, and enhanced overall campaign performance.”
- Ayushi Gudwani, Founder, FS Life, stressed the importance of “attributing online spends to walk-ins and offline conversions” for efficient omnichannel operations.
- Swagat Sarangi, Co-Founder, Smytten, noted the “leapfrogging” nature of Tier 2/3 consumers and reported a “20% improvement in CAC with Adoption of Advantage+ App Campaigns.”
- Aakriti Rawal, Co-Founder, House of Chikankari, highlighted a “remarkable 30% higher ROI in new markets” by leveraging Advantage+ for global expansion.
- Gaurav Khatri, Co-Founder & CEO, Noise, emphasized category expansion and manufacturing in India, citing “90% of our campaigns leverage A+ to scale efficiently.”
- Suramya Jain, Co-Founder, RAS, underlined the power of influencer marketing, which “increased our ROAS by 25% and also reduced our acquisition cost by 20%.”
Beyond Core Offerings and Creator-Led Building:
The report also found that 84% of startups have diversified beyond their core offerings, leveraging synergies across product lines and customer segments. They are increasingly using digital tools like social listening and keyword analysis to identify expansion opportunities.
Furthermore, 88% of brands are now partnering with creators, including niche influencers and celebrities, to foster trust and reach in a fragmented digital landscape. Notably, 60% of startups begin these collaborations within their first two years, even with minimal digital marketing infrastructure.
As India’s startup landscape continues to evolve, the Meta-Alvarez & Marsal report serves as a timely roadmap for founders and marketers, emphasizing the critical levers for sustainable scale, whether through AI-led efficiency, creator-driven storytelling, or a Bharat-first expansion strategy.