Seven in 10 Indian startups now use AI, with small-town growth and global ambitions on the rise, reveals Meta report

India’s startup scene is changing quickly. And it’s not just the big cities leading the way anymore. A new report by Meta, in partnership with Alvarez & Marsal India, shows how young businesses across the country are growing differently. Released today on the occasion of Micro, Small and Medium-sized Enterprises (MSME) Day, the report is based on conversations with 100 high-growth startups from various sectors.

One of the biggest shifts is in how startups are using technology. More than 70 per cent of them have already started using artificial intelligence in important parts of their business. In marketing alone, 87 per cent of those using AI said it helped them lower their customer acquisition costs, in some cases by nearly 30 per cent. Sectors like healthcare, edtech and beauty are leading the way. They are using AI for customer service, data insights and personalised campaigns.

The report also highlights how the journeys of customers are changing. Around 67 per cent of startups are now using an omnichannel approach. This means people might discover a product online through Instagram or WhatsApp but still prefer to buy it in-store. This is common in areas like fashion and home décor, where seeing and feeling the product still matters.

Another big focus area is smaller cities. Almost all startups surveyed are expanding into Tier 2 and Tier 3 towns. They are using local languages, regional influencers and WhatsApp-based communication to build trust and grow their reach. In fact, service-based startups are entering these markets even earlier than product-led ones.

We can also say that global growth is no longer just a dream. More than half the startups, or 52 per cent, are already exploring international markets like the US, UK and UAE. Big thanks to digital tools, many of them are now able to test and launch their offerings abroad faster and at lower cost.

Startups are also not sticking to just one product anymore. About 84 per cent have added new categories or services to their business. They often rely on what people are searching for online or what’s trending on marketplaces to decide where to grow next. Strong brand value, however, remains key to making these moves work.

Creators are also becoming a big part of how startups grow. According to the report, 88 per cent of startups are already working with influencers, sometimes right from their first year. These collaborations help brands connect with the right audience, build credibility and stand out in the digital crowd.

To put this in simple terms, Indian startups today are thinking big and building much smarter. Whether it is through AI, regional growth, global expansion or creator-led storytelling, they are finding new ways to scale. 

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