A new report by Meta and Alvarez & Marsal India has revealed that over 70% of India’s fast growing startups are now using artificial intelligence (AI) across their core business functions. The study, titled “Six Levers of Growth for India’s Startups,” is based on interviews with 100 rapidly scaling startups across the country.
According to the report, startups that have adopted AI are seeing big improvements. One major benefit is a 30% drop in cost-per-acquisition (CPA). This means they are spending less money to gain new customers, thanks to automation, predictive analytics, and personalised customer engagement.
The report also says 67% of startups are now using omnichannel models combining online and offline experiences to match how modern customers shop today.
India’s startup ecosystem is growing fast, and this growth is not limited to metro cities. Startups are also reaching customers in tier 2 and 3 towns, as well as international markets. Factors like better digital access, more early-stage funding, and increasing consumer spending have helped fuel this boom.
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