Indian startups witnessed a roller-coaster ride in the past three years. They were pounded by the pandemic in the first place, followed by geopolitical uncertainties and the ongoing economic downturn. However, technology adoption, strategic thinking and a VC-led funding spurt (2021 turned out to be a record year in terms of capital inflow) kept the lights on for the startup ecosystem.
Overall, startups across the country found ways to adapt and innovate, positioning themselves for success in a fast-changing market.
The trials and tribulations continued, though, and many companies (even mature businesses) did little to impress their users in 2022. In contrast, a host of early stage startups rose and shone with solutions that addressed real-life pain points.
Interestingly, the strategy playbook of Indian startups also underwent a sea change during this critical phase. With the onset of a funding winter in 2022, startups abandoned their growth-at-any-cost strategy and focussed on revenue generation for long-term play. When consumer spending dwindled, businesses embraced utility and value addition to keep them coming back. And when the competition was fierce, we observed market consolidations as never before.