Indian start-ups are benefiting more and more from having a strong digital core on the cloud. Nearly 37 per cent of the 115 start-ups surveyed recently by SAP India, in collaboration with Zinnov Digital, plan to spend at least 15 per cent more on enterprise applications in 2023.
Over 80 per cent of the start-ups — across the enterprise tech, health tech, retail, logistics, and auto tech sectors — reported a substantial increase in revenue, underlining the positive impact of enterprise applications, the report stated.
Titled ‘Driving the next phase of sustainable growth for Indian start-ups in 2023 and beyond’, the report suggests start-ups will continue to invest in enterprise technology platforms owning to their proven ability to deliver business outcomes and return on income.
Sanket Deodhar, Vice-President-Digital Natives and Start-ups, SAP India, said, “Indian start-ups today require adequate tech infrastructure to help them in diversifying the business, scaling up operations, and acquisition and retention of the right talent. Mission-critical enterprise resource planning (ERP) systems on the cloud are powerful enablers that provide valuable insights and direction to navigate challenges, and accomplish goals, including attracting investors, fair valuations and retaining a competitive edge.”
The key benefits of enterprise applications include top-line acceleration and control over bottom line, quick revenue recognition, and effective handling of complex billing —based on contracts and consumption — for differentiated service lines.
The report noted that technology remains centre stage, influencing how start-ups grow sustainably. It says 74 per cent of start-ups in India have reported direct benefits from enterprise applications. Additionally, 24 per cent of start-ups believe that achieving maturity in their business model, driven by robust technological capabilities and scalable operations, plays a crucial role in attracting investors.
About 68 per cent of the respondents reported a strong growth in revenue and valuations after adopting enterprise technology solutions, the report said. Start-ups will continue to prioritise investment in enterprise technology for their the next phase of growth and development. As much as 81 per cent of start-ups cited automation and standardisation of processes across divisions, with faster customisations, as the primary benefit derived from hosting enterprise applications on the cloud, the report noted.