77% Indian startups investing in AI, advanced technology: SAP report

A recent report by SAP India, in collaboration with Dun & Bradstreet, reveals that over 77% of Indian startups are investing in technologies such as Artificial Intelligence (AI), machine learning (ML), the Internet of Things (IoT), and blockchain. Vice-President and Head of Digital Natives at SAP Indian Subcontinent, Mr. Sanket Deodhar, emphasized that as companies shift their focus from Gross Merchandise Value (GMV) to Gross Margin (GM), technology is crucial for building sustainable business models based on transparent financial data.

The report highlights that 85% of startups view strong unit economics as vital for profitability and enhancing their valuations. Additionally, 79% believe adopting enterprise applications integrated with advanced technologies like AI is essential for scaling their operations and improving unit economics. Notably, 72% of startups are either investing in or planning to invest in these technologies.

In 2023, Tier II and Tier III cities emerged as innovation hubs, contributing to 40% of new tech startups. Cities such as Chandigarh, Jaipur, and Indore are home to 15% of India's tech talent, and 25% of newly founded tech startups are leveraging DeepTech solutions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.