70% Of Indian Startups Now Using AI In Core Operations: Meta-A&M Report

Over 70% of India's high-growth startups have begun integrating artificial intelligence (AI) into their core business operations, highlighting AI's growing role as a primary driver of growth in the startup ecosystem. This insight comes from a recent report titled "Six Levers of Growth for India's Startups", jointly released by Meta and Alvarez & Marsal India.

The study, based on interviews with 100 rapidly scaling startups, found that companies adopting AI are seeing approximately a 30% improvement in their cost-per-acquisition (CPA) metrics. These gains are attributed to the use of automation, predictive analytics, and hyper-personalised customer engagement strategies. According to the report, sectors such as healthcare, edtech, and beauty are leading the charge in AI maturity, deploying the technology for enhanced customer service, data-driven forecasting, and individualised user experiences.

The second most widely embraced strategy among the startups is the adoption of an omnichannel approach. About 67% of surveyed firms have merged digital channels-such as online ads, influencer-led reels, and WhatsApp communication-with their offline retail strategies. Founders operating in high-touch categories like fashion, home, and fitness emphasise the importance of linking digital marketing spend directly to in-store footfalls to maximise return on investment.

Geographic expansion into Tier 2 and Tier 3 cities has also emerged as a major avenue for growth. Startups are increasingly targeting non-metro regions to unlock untapped demand. Service-based ventures, in particular, are entering these markets almost a year earlier than product-focused businesses, often using regional content and local influencers to speed up customer acquisition.

Category diversification and creator-led brand building round out the six key growth levers identified in the report. While 84% of startups are expanding into new product or service categories, 88% are relying on content creators to drive brand engagement.

Himanshu Bajaj, Managing Director and Head of Alvarez & Marsal India, stated, "AI, tiered expansion and omnichannel models are foundational to execution today, not future bets."

The report also notes a significant rise in overseas ambitions, with 52% of the surveyed startups actively expanding into international markets. The United States, United Arab Emirates, and the United Kingdom emerged as the most preferred destinations for Indian-origin offerings, indicating that global outreach is no longer limited to only the most established players.