India has become the most sought-after destination for global organizations looking to scale and create a long-lasting business. This is possible because of the plethora of opportunities it offers. The last two years have been a watershed moment for industries across the board as they pushed organizations to build resilience and retool for the post-pandemic world. For the global startup ecosystem, this ‘great reset’ meant keeping up with fast-moving technology trends to remain relevant for their consumers and investors. India, like the rest of the world, saw acceleration of digital transformation across multiple frontiers during this phase. Technology adaptation has percolated into Tier 2-3 cities and beyond in India. As indicated by TRAI, the overall internet penetration in India has reached 834 million, or 62 percent, as of June 30, 2021, with rural subscribers growing faster on a YoY as against their urban counterparts. This is well complemented with the increasing number of smartphone users in the country that is expected to reach 844 million by 2021 year-end. The consolidated impact of these dramatic shifts are forming some key trends that will shape 2022 for the investor ecosystem. <cmsannotation type="cmsannotation" annotationid="Turning passion into profits" comment="subhead" text="Turning passion into profits">Turning passion into profits</cmsannotation> A fascinating phenomenon has been brewing unwittingly - entrepreneurs turning passion into profits. Today, India boasts of a vibrant creator landscape, with an estimated 100 million creators spread across categories, languages and regions. Beyond big-ticket celebrities, micro-influencers and regional creators are profoundly shaping India’s digital culture. Creators from Tier 2 and 3 cities add diversity to the content, especially in regional vernacular that resonate well with their respective fan bases. Beyond obvious content categories that appeal to mass audiences such as food or travel, regional content creators are now exploring their niche in diverse themes that are colloquial and locally relatable. As we make our way into an increasingly connected world, digital platforms are paving the way for the passion economy to strengthen its hold in India. Accompanied by the ease of digital payments, such platforms have opened doors for content creators to monetise their passions. With these developments, market conditions are ripe for platforms like Patreon and Substack to tap into the India opportunity which enables creators to earn direct revenue from their followers. At present, creators are overly dependent on brands to monetise their fanbase. In the long run, this may not be a sustainable model, especially for mid to lower tier creators that are looking at diversifying their sources of income. <cmsannotation type="cmsannotation" annotationid="Build in India for the world" comment="subhead" text="Build in India for the world">Build in India for the world</cmsannotation> In the last few years, India has become the most sought-after destination for global organizations looking to scale and create a long-lasting business. This is possible because of the plethora of opportunities the Indian landscape has to offer. India’s booming domestic market opportunity, highly skilled, and top-notch talent pool and a progressively open regulatory environment is what the country has to offer to the global companies. Various global behemoths, including the likes of Uber and Twitter, have set up their global development centers in India that are driving innovations for the world. The unique market conditions provide a great learning opportunity to global companies, who in turn use these learnings to build for the emerging economies. From being mere backend centers, the India business landscape allows such global firms to focus on high-value activities such as intellectual property (IP) creation and building competencies around emerging technologies by leveraging product thinking to drive innovation for global markets. India has been witnessing a sharp revival of global in-house centers and development centers of various global organizations such as Intel, Adobe, and others have demonstrated that cutting-edge products for global markets can be developed out of here. The convergence of digital capabilities, thanks to the pandemic, availability of talent, business cases, and customers are all contributing factors to cementing India’s position as the driver of global innovation. <cmsannotation type="cmsannotation" annotationid="Unlocking enterprise value" comment="subhead" text="Unlocking enterprise value">Unlocking enterprise value</cmsannotation> The integration of dominant tools that influence SaaS is all set to make businesses and everyday activities faster, more productive, and certainly more affordable. India’s startup ecosystem has emerged as the third largest set-up globally after the US and China. Recent developments in China, including curbs on new-age companies, have increased VC funds’ focus in India. Startups are waiting to spread their wings internationally; these names include Zoho, Agile CRM, Playtonia, and Facilio. Thus, one can understand how SaaS companies are at the forefront of investing criteria and have been ruling investors’ minds with their scalable business models and revenue-generating capabilities. Indian companies are increasingly becoming a good target customer base for companies looking at unlocking enterprise value. This is happening due to a shift in mindset from "saving costs by building it in-house" to "chasing growth by buying the best in class products". This is enabling companies to compete with the best in the world without losing the time advantage. Indian enterprises are also increasingly open to investing in tools that enable employees to increase productivity and collaboration. This is increasingly important in a world where WFH and hybrid work are the new normal. <cmsannotation type="cmsannotation" annotationid="Changing face of social and community platforms" comment="subhead" text="Changing face of social and community platforms">Changing face of social and community platforms</cmsannotation> The face of social media is slowly changing as people on the internet are moving beyond sharing moments as a method of interaction into a way of sharing that has community at its heart. In recent times, interest-based platforms have seen a surge in user base and engagement as users find a sense of belonging. Globally, platforms like Discord and Roblox have seen tremendous growth on the back of a growing gaming community. Similarly, platforms like Strava have grown on the back of a strong fitness community. Many such examples can be found across various other interest areas like music, storytelling, design, learning and more. India has an average age of 29, making it one of the youngest populations globally and the most lucrative market where community-based platforms are poised to grow. With the advent of new social platforms and rising digital cohorts, the space will become more community-specific while new-age entrepreneurs will be focused on promoting community-based platforms in 2022 and beyond. This will allow them to focus their efforts on a small number of critical audience groups, making it easier to focus on quality over quantity. Note: This is an opinion piece by Viral Jani, EVP &amp; Country Head, India, Times Bridge. The story originally appeared in YourStory. <meta content="cms.next" name="cmsei" />

Trends that will disrupt the investor ecosystem in 2022 and how startups can leverage the opportunity

Almost three decades ago, India started its journey towards globalization, opening its economy to global market forces and economic liberalization. As of today, India is among the fastest growing major economies in the world. The country offers an attractive long-term future powered by a combination of variables that makes it the most favored destination for investors across the globe. <cmsannotation type="cmsannotation" annotationid="India : World’s largest open Internet market" comment="subhead" text="India : World’s largest open Internet market">India : World’s largest open Internet market</cmsannotation> From a technology point of view, India is experiencing a confluence of multiple favourable conditions. India is the world’s largest open internet market with the largest per-capita data consumption globally, and has a huge runway of growth over coming decades. The country represents a huge market opportunity with over a billion-plus consumers. Recognizing that there are many Indias within India that are, collectively, more diverse and unique than an entire continent, the opportunity for global businesses are endless. For over a decade now, India has been amongst the fastest growing economies of the world. Its active internet user base is expected to increase by 45% in the next five years and touch 900 million by 2025 from around 622 million in 2020. This increase will be driven by higher adoption in rural India, which has clocked a 13% growth to 299 million internet users, or 31% of India’s rural population over the past year. <cmsannotation type="cmsannotation" annotationid="Evolving consumer economy" comment="subhead" text="Evolving consumer economy">Evolving consumer economy</cmsannotation> India is as diverse as a continent, both culturally and economically. The top of the pyramid has an inherent global vision and these consumers are typically the early adopters that provide the first impetus for any new product or technology making its way into the country. While the early adopter demographic drove the first wave of internet adoption in India, technology is now becoming all-pervasive across age groups, gender and geographical spread. Today, Indian consumers are maturing in their digital behavior across the board and are choosing to do more with technology rather than simply using social networks and consuming digital content. Across digital payments, e-commerce, e-learning, online gaming and more, the country is rapidly adopting a digital way of life. The pandemic has accelerated digital transformation across the board. Having reimagined their behaviors and values as consumers, the new evolved Indian consumer presents a huge opportunity for global businesses wanting to enter India. Despite the last two turbulent years, India’s consumption prospects remain robust as consumer incomes are projected to rise, and millions more are expected to experience growth in their spending power. These trends are trickling down to consumers across Tier 2 and Tier 3 markets, with the emergence of easy credit and pay later options. Recognizing this, global companies are now increasingly investing to build services and products made for Indian conditions to tap into this opportunity. The recent successes of global giants in India, including category-leading organizations, is a testimony to this. Consequently, for global start-ups across sectors like fin-tech, consumer technology, e-commerce, ed-tech &amp; more, that are looking to expand their footprint and create lasting business success, India is truly becoming a dream destination. <cmsannotation type="cmsannotation" annotationid="Building in India for the world" comment="subhead" text="Building in India for the world">Building in India for the world</cmsannotation> In the last decade, we have seen various global start-ups succeed in the Indian market leveraging the high-quality workforce that the subcontinent offers. The likes of Uber, Twitter and others have set up their global development centers in India that are driving innovations for the world. This trend is only going to get more popular in the coming years as global companies eye India’s unique market conditions to leverage learnings from the country to build stronger footholds in emerging economies. Today, from being mere backend technology centres, India’s business environment has become the launchpad for various strategic initiatives including IP creation, building competencies around emerging technologies, to drive innovation for emerging global markets. Additionally, India’s demographic dividend in terms of its youth population is a key contributing factor that is expected to propel this growth for global behemoths entering India. <cmsannotation type="cmsannotation" annotationid="Conducive and Open Regulatory Environment" comment="subhead" text="Conducive and Open Regulatory Environment">Conducive and Open Regulatory Environment</cmsannotation> The Indian business landscape is far more open and accessible for global companies, as compared to some of the world’s biggest economies. The increased focus towards welcoming forging investments in the country, has further unlocked India’s potential and accelerated the growth of its economy. India’s ranking as per the Ease of doing business index continues to improve, placing India at the 63rd position, compared with 77th in 2018 and 100 in 2017. These factors will only bolster confidence of global companies looking at entering and scaling in the Indian market. The Indian economy is on an unprecedented growth trajectory that makes it an unmissable opportunity for various global companies that are looking to enter India and witness long-term success in the market. However, the window of opportunity to enter a growing market like India is always limited. Many Indian companies are also swiftly innovating and capturing the burgeoning Indian story. The cultural diversity that India offers coupled with the increasing spending power of Next Gen India, gives global organizations entering the Indian market an opportunity to establish themselves and form a local connect with their consumers, from day 0. Therefore, it is prudent to enter a country as diverse as India, while it is still in its early stages of growth. For global companies, it is always ideal to commence with a sharp focus on the market’s early adopters who would become users of the standard global offerings. Considering the ample opportunities in this melting pot of cultures and beliefs that India is, the international startup ecosystem cannot afford to ignore the opportunities this market has to offer! Note: This is an opinion piece by Viral Jani, EVP &amp; Country Head, India, Times Bridge. The story originally appeared in The Times of India. <meta content="cms.next" name="cmsei" />

In what ways 2022 will be a golden period for global startups to enter India

Over the last two decades, many MNCs have made deep inroads into the Indian market. India is the world’s largest open internet market today, which translates into a plethora of opportunities for global organizations. The Indian economy has been witnessing a growth trajectory like no other, making it a favorable destination for global companies looking to expand their reach and create a sustained business success story. Currently, India is the fifth-largest economy globally and is projected to grow to $5 trillion by the end of 2025. India is the world’s largest open internet market today, which translates into a plethora of opportunities for global organizations. However, succeeding in India requires more than transplanting a global idea. Organizations that have made a mark in the subcontinent come to India with a long-term commitment and consider India not just another market but also a learning centre for launching and scaling in emerging economies worldwide. Consequently, strategic partnerships play a crucial role in enabling success for global companies in India, in more ways than one. Some of these include – Finding a place in India’s cultural zeitgeist: India is a diverse continent both culturally and economically, to an extent that every 200 km, language and culture changes in the country. Given this diversity, understanding the pulse of Indian consumers and what shapes their sensibilities, is one of the most critical aspects of making a lasting impact in India. Cricket, movies, politics, music, festivals, and food are all popular pursuits in India and for a global brand to build a deep consumer connection, it is imperative for them to be able to leverage these cultural moments. Global organizations need to recognize that many Indias exist within the subcontinent and to achieve scale and success, a localized strategy is a must. A deep-rooted meaningful connection with key target audiences is often built on the back of such momentous moments that bring people together almost naturally. This is where the right strategic partner and their understanding of the local know-how can hugely benefit global brands that are new to the cultural nuances of India. Forging strategic partnerships: Over the last two decades, many MNCs have made deep inroads into the Indian market. The key to matching pace with the diverse market is to invest in cultural alignment through a phased approach consisting of access driven localisation of positioning, product and channels for an engaging market penetration. The Indian business landscape is far more open and accessible for global companies, as compared to some of the world’s biggest economies. The increased focus towards welcoming forging investments in the country has further unlocked India’s potential and accelerated the growth of its economy. Recent successes achieved by some global behemoths including Uber and Airbnb showcases how a well thought strategic crafted partnership with people, organization, government &amp; IPs is important for long term growth and impact. Leveraging India’s potential as the innovation hub: India for long has served as a go-to destination for low-tech services but the market has now become the tech and innovation hub for various global organizations. With its massive consumer market, it has users for all kinds of new products or technology and is slowly developing into a centre for emerging markets. If it works in India, it would almost certainly work in other developing economies. While the country has already established itself as a trusted player for service delivery, it is now on the cusp of becoming the product innovation hub for the world. India is the world’s largest democracy with young demographics and an open digital market. It does offer many opportunities but with its own unique challenges. Therefore, it is better to look at it as a collection of interrelated regional economies, with varying regulatory and investment environments from one state to the next. While the nation has enormous prospects for global brands, it continues to be a large and complex market that requires careful navigation. Approaching the market with a multi-dimensional view, backed by a local strategic partner can lead to a successful venture in the country. Localisation Strategy: With 700million online users and nearly 200 million online buyers in India, initial success for a global business is achievable with the right product and strategy. But for sustained growth, companies have to navigate through various market complexities. With a population of 1.4 billion, 20+ other official languages, varied dialects, food, and living styles, India provides an opportunity to global brands, like no other developing economy. It is equally important to look at India multidimensionally, as consumer behaviors drastically differ between urban metros and Tier 2 and 3 cities. An empathetic approach to the market with focus on the cultural nuances, market sentiments, and customer segments mentored by a local partner can only ensure continued success. To summarise, for making it count in India, global organizations require a deep understanding of the country’s diverse cultural nuances, a solid local operations partner, investment in local talent and an unmatched understanding of the business ecosystem. For tapping and benefitting from the ample opportunities that India offers, global companies should enter the market with a long-term commitment and vision and must customise their working model to suit the requirements of the ever-evolving Indian consumer. Note: This is an opinion piece by Viral Jani, EVP &amp; Country Head, India, Times Bridge. The story originally appeared in The Financial Express. <meta content="cms.next" name="cmsei" />

How strategic partnerships can help global companies enter India and scale their business

In the next few years, why India will continue to matter to global organizations will not just be limited to the sheer market size and scale, but the tremendous opportunity to participate in one of the richest and diverse startup innovation ecosystems in the world, writes Viral Jani, EVP &amp; Country Head, India, Times Bridge. In the last few decades, the Indian economy has witnessed tremendous growth, making it an attractive investment destination for businesses looking to expand internationally. As the world’s largest open internet market, with a vast population, highest per capita data consumption, high GDP growth and increasing purchasing power, India presents several opportunities that make it an unmissable business destination. Additionally, India’s booming domestic market opportunity, high quality talent pool and a progressively open regulatory environment add to the appeal of the subcontinent. India’s digital transformation journey has been accelerated by the entry of various category leading global players in the Indian market. This can also be credited to various policy measures implemented by the Government in the last few years, due to which the rate of foreign direct investment (FDI) inflows to India has been steadily increasing. With over half a billion internet users, India is one of the largest and fastest-growing markets for digital consumers. The new evolving consumer, typically the top of the pyramid, has an inherent global vision and this class of consumers are the early adopters of all kinds of new technologies that global organizations have to offer. Today, technology adoption has transcended geographical boundaries and has become all pervasive, which is a huge opportunity that organizations across the board are continuing to tap. It is estimated that by 2030, India’s ecommerce market will be the third-largest by scale. Interestingly, these trends are now no longer limited to the metropolitan cities of India but are decisively trickling down to consumers in Tier 2 and 3 cities. In the last two years, these markets and smaller cities have grown as a revolutionary wave that has been found to be delivering success for all sectors, including new-age industries such as fintech, edtech, among various others. With the rising purchasing power of Indian consumers, the blossoming of fintech platforms and the growing preference for digital payments, the Indian economy is primed for the digital era and is digitizing faster than many mature and emerging economies. On the technology front, disruptions such as artificial intelligence. Cloud technologies, blockchain, automation, IoT and more, have rapidly shaped an ever-evolving blueprint of how businesses are conducted, both globally and in India. Many category leading companies have combined both online and offline interactions to penetrate deeper into the consumer market. Global organizations like Uber, Amazon, Twitter, Headspace, Coursera have already witnessed unprecedented success in India by using advanced technologies to meet the evolving demands of Indian consumers. These global behemoths are increasingly adopting digital strategies across business function areas, and utilizing more sustainable and smarter ways to operate in the Indian market. This emergence of technology, primarily introduced by global firms that entered India in the last few years, has inspired various indengenous startups and accelerated the pace of innovation and technology-led growth in India. This category expansion has enabled healthy competition in the Indian business ecosystem considering there is enough opportunity for both, global and local organizations to coexist, while the market continues to organically grow. To this effect, India – with 90 unicorns – is the third-largest unicorn hub globally today and had 46 unicorns in 2021 alone, a testament to the unprecedented growth India’s tech ecosystem is witnessing. Since the late 1980s, when the labor arbitrage model became a cost-effective solution for multinational firms, India was looked at as a destination for low-cost, outsourced software and support services. Historically, outsourcing has bolstered India’s service sector while also creating valuable jobs and promoting urbanization. Fast forward to 2022, India has now become the tech and innovation hub for various global organizations. With its massive consumer market, it has users for all kinds of new products or technology and is swiftly developing into a center for emerging markets. Global organizations have realized that if a product/service works in India, it will most certainly work in other developing countries. Having established itself as a trusted player for service delivery, India is now on the verge of becoming the global innovation hub. Winning in India requires an intense, concerted and continued effort. For tapping and benefitting from the ample opportunities that India offers, global companies should enter the market with a long-term commitment and vision and must customize their working model to suit the requirements of the ever-evolving Indian consumer. While leveraging the plethora of opportunities India offers, global companies are playing an equally crucial role in boosting the culture of innovation and in promoting healthy competition in the country. Note: This is an opinion piece by Viral Jani, EVP &amp; Country Head, India, Times Bridge. The story originally appeared in The Times of India. <meta content="cms.next" name="cmsei" />

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