70% startups using AI, 88% partnering with creators, reveals Meta report

As per the report, there is a rise in AI adoption with over 70% of startups already using AI in their operations. In marketing, 87% of these companies reported a 30% improvement in cost per acquisition (CPA), particularly in sectors like healthcare, beauty, and edtech.

By  Storyboard18| Jun 30, 2025 4:00 PM
"Many of the people in big companies, I think, are downplaying the risk publicly," Hinton stated, adding that this public stance often contradicts their private understanding of the perils. He specifically highlighted Demis Hassabis, CEO of Google DeepMind, as a rare exception, commending him as one of the few who "really do understand the risks and really want to do something about it."

India’s startup ecosystem has seen rapid growth over the past decade, fuelled by rising digital penetration, early-stage funding, and increased consumer demand across both metro and non-metro regions. AI adoption, omnichannel presence, tier-2/3 market expansion, cross-border growth, category diversification, and creator-led brand building are the six major levers reshaping the startup landscape, as per a report by Meta and Alvarez & Marsal India.

The report highlights key strategies driving growth for India’s emerging startups, based on insights from over 100 high-growth startups. As per the report, there is a rise in AI adoption with over 70% of startups already using AI in their operations. In marketing, 87% of these companies reported a 30% improvement in cost per acquisition (CPA), particularly in sectors like healthcare, beauty, and edtech.

The report also shows that 67% of startups are using omnichannel strategies to meet evolving consumer expectations. Discovery often begins online, through digital ads, influencer Reels or WhatsApp and transitions into offline purchases, especially in categories like fashion and home.

Another key trend is the focus on tier-2 and tier-3 markets, which are emerging as strong growth areas. Many startups, particularly in the services sector, are entering these regions earlier in their growth journey, using vernacular content and regional influencers to build connections.

In a shift from earlier patterns, over half of the surveyed startups (52%) are expanding globally, targeting markets like the US, UK, and UAE. Startups are pursuing cross-border growth to tap into larger customer bases and global demand for Indian products and services. The report also highlights that 84% of startups are diversifying their offerings, using tools like social listening and marketplace data to identify new category opportunities. Most agree that strong brand equity is essential before expanding.

Finally, the role of digital creators continues to grow. Around 88% of startups now work with influencers to drive brand engagement, with 60% starting these collaborations within their first two years. According to the report, the combination of AI, creator marketing, and Bharat-first strategies is powering the next phase of startup growth in India.

First Published onJun 30, 2025 4:00 PM

SPOTLIGHT

Special CoverageCalling India’s Boldest Brand Makers: Entries Open for the Storyboard18 Awards for Creativity

From purpose-driven work and narrative-rich brand films to AI-enabled ideas and creator-led collaborations, the awards reflect the full spectrum of modern creativity.

Read More

“Confusion creates opportunity for agile players,” Sir Martin Sorrell on industry consolidation

Looking ahead to the close of 2025 and into 2026, Sorrell sees technology platforms as the clear winners. He described them as “nation states in their own right”, with market capitalisations that exceed the GDPs of many countries.