Startups that adopt enterprise level tech platforms register higher revenue: Study
The study by SAP India and Zinnov showed that startups that implement technology platform of enterprise software companies recorded faster revenue growth
Indian startups which adopt technology platforms from the global software enterprises have seen a substantial increase in revenue and a resultant increase in valuations, as per a recent study.
The study titled, Driving the next phase of sustainable growth for Indian startups in 2023 and beyond, by SAP India in collaboration with Zinnov Digital, also found that 80% of startups—in enterprisetech, healthtech, retail, and logistics, and AutoTech—which used enterprise-level applications have reported a substantial increase in revenue, as per a statement.
Benefits like top-line acceleration and control on the bottom line, quick revenue recognition, handling complex billing based on contracts, and consumption for differentiated service lines, emerged among the surveyed 115 startups.
Key outcomes
About 68% of respondents reported a strong growth in revenue, after adopting enterprise technology solutions, leading to an increase in valuations. Besides this, 37% of the startups said they plan to increase their spending on enterprise applications by more than 15% this year.
The biggest benefit that startups realised by implementing enterprise-level applications were the automation and standardisation of processes across divisions with faster customisations. Adoption of tech across the public cloud is also set to grow by 2X, while the private cloud promises about a 50% increase in adoption—which could show startups placing a high focus on moving workloads to the cloud, as per the study.
"Indian startups today require adequate tech infrastructure to help them diversify business, scale up operations, and acquisition and retention of the right talent," said Sanket Deodhar, Vice President- Digital Natives and Startups, SAP India.
Despite the prevailing funding winter and dynamic market conditions, Indian startups continue to grow and there is no sign of investments slowing down for high-performing startups in the coming years, the companies said in a statement.
"As we enter 2023, we remain optimistic that investment in the right technology and organisational augmentation can help start-ups navigate the economic slowdown caused by the recession and other macroeconomic factors," said Sidhant Rastogi, Managing Partner at Management Consulting.