Enterprise adoption among startups: A SAP India-Zinnov Digital study of 115 Indian startups on Wednesday said that more than 80 per cent of startups in the enterprise-tech, health-tech, retail, logistics and auto-tech have reported a ‘substantial increase’ in revenue, highlighting the benefit of enterprise applications on a startup’s performance.
On the other hand, around 68 per cent of respondents reported a ‘strong growth’ in revenue after adopting enterprise technology solutions, leading to an increase in their valuations while around 74 per cent reported ‘direct benefits’ from implementing enterprise applications, according to the survey ‘Driving the Next Phase of Sustainable Growth for Indian Startups in 2023 and Beyond.
Sanket Deodhar, Vice President of Digital Natives and Startups, SAP India said, “Indian start-ups today require adequate tech infrastructure to help them diversifying business, scale 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,” he said.
The study noted that Indian startups continue to be resilient amid challenges related to funding winter and dynamic market conditions. More than 75 per cent of startups pointed towards metrics such as revenue generated in the past year, product and service margins, and market share based on traction, for determining valuations, the results showed.
Also read: 88% of SMEs have a digitalisation strategy in place: Survey
However, 81 per cent of startups reported customer sentiment as one of their biggest business concerns, indicating the importance of customer acquisition, experience, and servicing metrics.
Moreover, 70 per cent of respondents noted that partner evaluation and lack of in-house knowledge to manage remained 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 at Zinnov Management Consulting.