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.
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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.
