INDIA'S AI STARTUPS ON THE RISE

NATIONAL STARTUP DAY

- ANINDITA ACHARYA

Have a startup idea but worried about funding? While 2024 saw a slight dip in funding activity, India remains the world's third-largest startup ecosystem, with a steady annual growth rate of 12-15%. Challenges like limited access to advanced computing and a shortage of skilled talent persist, but on National Startup Day, entrepreneurs are optimistic, believing Indian startups are moving in the right direction.

Anurag Gupta and Rajeev Tiwari, Co-Founders of Stemrobo, candidly acknowledged that nearly 90% of startups in India fail within their first year. "This usually happens because of problems like not understanding what the market wants, not having enough money, or poor management. Many startups launch products without properly checking if there's a real demand for them, which leads to low sales. Also, not having enough funding makes it hard to grow or even keep the business running, and inexperienced leaders often make poor decisions that slow down progress," they said. Poorly defined business models, often lacking clarity on revenue generation and scalability, further hinder growth, with startups failing due to unsustainable strategies, said Rahul Subramaniam, Co-founder, Athena Education.