AI and Omnichannel Drive Next Growth Phase for Indian Startups: Meta Report
As India's dynamic startup ecosystem enters its next phase of accelerated growth, a new report by Meta and Alvarez & Marsal India reveals how artificial intelligence (AI), omnichannel customer strategies, and expansion into Tier 2 and 3 cities are reshaping the future of entrepreneurship in the country.
According to the report, over 70% of Indian startups have now integrated AI across their core business functions, while 67% have adopted omnichannel models to respond to modern customer journeys that often begin online and end in offline purchases.
Digital Innovation at the Core of Startup Success
The findings highlight a significant digital transformation in the way startups approach growth and customer engagement.
“In today’s dynamic times, startups that think smart and act fast to evolve will lead the charge,” said Sandhya Devanathan, Vice President, India and Southeast Asia, Meta.
“At Meta, we’re proud to be partners in this journey, equipping them with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact.”
The report emphasizes that the startup boom in India is no longer limited to major metros. With growing digital penetration and consumer affluence in non-metro regions, startups are finding new demand pockets and are rapidly adapting their models to serve diverse customer bases.
AI Adoption on the Rise: Marketing Sees Major Gains
AI is proving to be a game-changer, especially for marketing and customer engagement.
According to the study:
- 87% of startups using AI in marketing reported a 30% improvement in cost per acquisition (CPA).
- Startups are also using AI to enable predictive analytics, chatbots for customer service, content personalization, and supply chain optimization.
Industries like healthcare, edtech, and beauty are leading in AI maturity by deploying automation at scale to enhance user experience and boost operational efficiency.
“We’re seeing a significant shift in how Indian startups think about scale—not just for pursuing growth but building more sustainable businesses that focus on value creation,” said Himanshu Bajaj, Managing Director and Head, Alvarez & Marsal India and GCC.
Omnichannel Strategy: Bridging the Online-Offline Divide
Modern Indian consumers increasingly move between digital and physical touchpoints, prompting startups to rethink how they engage customers.
67% of startups surveyed have adopted omnichannel strategies that offer seamless shopping and service experiences across websites, apps, social media, physical stores, and messaging platforms like WhatsApp.
These strategies help startups:
- Meet consumers at various digital and physical points of interaction
- Increase brand recall and engagement
- Optimize logistics and service delivery
Notably, WhatsApp and vernacular content are emerging as critical tools for reaching regional audiences.
Tier 2 and Tier 3 Markets: The New Frontier
India’s smaller cities and towns have become key battlegrounds for scale and innovation. The report notes that almost all surveyed startups are expanding into Tier 2 and 3 markets, motivated by:
- Rising digital accessibility
- Lower customer acquisition costs
- Increasing demand for personalized services
Interestingly, service-based startups are making inroads into these regions almost a year earlier than product-based startups, by leveraging:
- Local influencers
- Regional languages
- Mobile-first experiences
These markets are no longer considered peripheral—they are central to long-term growth.
Going Global: Startups Eye Cross-Border Expansion
Another key takeaway from the report is the growing appetite among Indian startups to expand internationally.
- 52% of startups surveyed are already operating or planning to operate in global markets
- The top export destinations include the United States, United Arab Emirates (UAE), and the United Kingdom (UK)
- The primary driver is access to larger total addressable markets (TAMs) and growing international demand for Indian innovation
This trend indicates a shift in mindset: Indian startups no longer wait to scale abroad—they build for global audiences from day one.
Meta’s Role: AI Tools for Business Growth
Meta’s platforms—Facebook, Instagram, WhatsApp, and Messenger—are becoming crucial enablers of startup success. Through its AI-powered ad solutions, business messaging tools, and creator ecosystem, Meta is helping Indian startups:
- Reach targeted audiences efficiently
- Build brand loyalty
- Streamline commerce across digital channels
As startups tap into AI and digital-first growth models, platforms like Meta are acting as infrastructure partners, providing the scale, data, and tools needed for competitive advantage.
Reader Takeaway: What This Means for India’s Startup Landscape
The findings of the Meta-Alvarez & Marsal report paint a picture of a resilient, adaptive, and forward-looking startup ecosystem in India.
Key Trends to Watch:
- AI is no longer experimental—it’s essential to scale and efficiency.
- Omnichannel is the future of customer engagement in hybrid consumption environments.
- Tier 2 and 3 markets offer untapped potential for rapid expansion.
- Global ambitions are becoming mainstream for Indian startups.
As India continues its journey to becoming a global innovation hub, startups are driving the momentum—not just with ideas, but with smart execution powered by technology and insights.
