Breaking barriers: Insights from TechSparks 2024 on scaling startups globally

In an increasingly interconnected world, the barriers to global expansion for startups are more porous than ever. At TechSparks 2024’s Bengaluru edition, the ‘Beyond Borders: Innovation on a Global Scale’ session offered valuable insights on how startups can successfully scale and navigate global markets, paving the way for them to thrive in the global marketplace.

Experts on the panel included Kiyoko Hashiba, Director for Global Promotion at the Tokyo Metropolitan Government; Srinivas Rao Mahankali, CEO of T-Hub; and Amit Purohit, Program Manager at iStart Rajasthan.

Tokyo: A changing landscape for global startups

Kiyoko Hashiba opened the session by discussing Japan's evolving startup landscape. She highlighted a new five-year plan aimed at increasing startup investments tenfold and fostering more unicorns and globally-operating businesses. “We want to have 10 times the number of startups doing business globally,” Hashiba explained, noting the collaboration between public and private sectors. Major Japanese corporations, including those operating in India, are supporting this initiative through venture capital arms and incubation programs.

“This initiative reflects a significant cultural shift in Japan’s approach to startups, aligning with global trends in innovation,” Hashiba added.

T-hub’s global playbook for startups

Srinivas Rao Mahankali of T-hub shed light on how the Hyderabad-based incubator has been empowering startups for global expansion. “We’ve worked with over 2,000 startups, helping them raise close to $2.5 billion in capital,” said Mahankali. He outlined T-hub’s unique framework, dubbed "Six M and 2 Ps," which focuses on methodologies, market access, money (capital), mentorship, motivation, and manpower.

Mahankali noted that T-hub’s strong partnerships with international corporations such as Suzuki, Renault-Nissan, and Panasonic give startups a platform to co-create solutions with global players. He also highlighted Hyderabad's strategic ties with Japan, particularly through the establishment of the Indian Institute of Technology (IIT) Hyderabad with Japanese funding, facilitating stronger market connections.

iStart Rajasthan: A heritage of innovation

Amit Purohit, Program Manager at iStart Rajasthan, highlighted the state’s comprehensive strategy for fostering innovation and scaling startups globally. “We’re not just encouraging entrepreneurship; we’re actively providing startups with work orders,” he explained. Over the past year, contracts worth approximately 12-15 crores have been issued, allowing startups to engage directly with the government and showcase their solutions.

Amit highlighted Rajasthan's strong reliance on tourism and the state's growing shift towards the content economy. He shared how investments in gaming, animation, and video graphics are paving the way for alternative careers, supported by capacity building and infrastructure development. Studios are being set up across cities to create a critical mass in this emerging sector.

Moreover, he highlighted that Jodhpur is home to India's first digital fintech university, a 1000-crore project, and it contributes significantly to India's Chartered Accountant pool. A Rajasthan Foundation chapter connects startups with non-resident Rajasthani business leaders to provide soft-landing services for their global ventures.

Harnessing the power of AI and emerging technologies

The discussion then turned to the impact of AI and emerging technologies on startup scaling. Srinivas noted, “Our newly established Center of Excellence in AI aims to nurture startups focused on vertical solutions in sectors like healthcare and fintech.” He emphasised the importance of embracing technological advancements and partnering with international entities.

He added, “We are building relationships with organisations worldwide, including those in the Bay Area and Dubai, to create pathways for our startups to enter new markets.” This proactive approach broadens opportunities for Indian startups and fosters collaboration that transcends geographical boundaries.

Kiyoko also mentioned Sushi Tech, an annual Tokyo startup event that attracts 40,000 participants from 82 countries, as a key platform for fostering international collaborations. She believes that India's expertise in IT, AI, and engineering offers valuable collaboration opportunities for Japanese startups, making Tokyo a prime consideration for global expansion.

Building bridges, not walls

The panel discussion underscored the value of partnerships and innovation for startups seeking global expansion. As Kiyoko Hashiba aptly summarised, “The landscape is dynamic and full of opportunities; it’s time for startups to take that leap.” By adopting emerging technologies and fostering international collaborations, startups are better positioned to succeed in an increasingly interconnected global market.