Over 70% of India’s high-growth startups have now started integrating artificial intelligence (AI) across core business functions, underscoring the technology’s rise as the ecosystem’s dominant growth lever, according to a new report by Meta in collaboration with Alvarez & Marsal India.
Titled “Six Levers of Growth for India’s Startups,” the study, based on interviews with 100 rapidly scaling ventures, finds that AI adopters are reporting a roughly 30% improvement in cost-per-acquisition (CPA) metrics, driven by automation, predictive analytics, and hyper-personalised customer engagement.
“Sectors such as healthcare, edtech, and beauty are leading in AI maturity, leveraging automation for customer service, predictive analytics, and personalisation,” the report states.
Omnichannel presence is the second most widely adopted strategy, with 67% of surveyed firms integrating online touchpoints such as digital ads, creator-led reels and WhatsApp messages with physical retail. Founders in high-involvement categories such as fashion, home and fitness emphasise the role of attributing digital spend to footfall conversions to optimise return on marketing investment.
Expansion into Tier 2 and Tier 3 cities has emerged as the new battleground for scale, with nearly all startups pushing into non-metro markets to tap into latent demand. Service-led businesses, in particular, are entering these regions almost a year ahead of their product-focused peers, leveraging vernacular content and regional influencers to accelerate user acquisition.
Category diversification (84%) and creator-driven branding (88%) complete the six growth pillars identified. Says Himanshu Bajaj, MD & Head, Alvarez & Marsal India: “AI, tiered expansion and omnichannel models are foundational to execution today, not future bets.”
Meanwhile, the study noted that cross-border forays are no longer restricted to mature players: 52% of respondents reported active overseas expansion, with the US, UAE and UK cited as top destinations for Indian-origin offerings.