67% of startups now use both online and offline ads: Report
On the occasion of World MSME Day, Meta, in partnership with Alvarez & Marsal India (A&M India), released a report that highlights six key levers shaping the next phase of India’s startup growth. Drawing insights from 100 high-growth startups, the report identifies AI adoption, cross-border expansion, omnichannel strategies, Tier 2 and Tier 3 market penetration, category diversification, and creator-led brand building as central themes.
The report notes that the ecosystem’s growth is being driven by digital innovation and evolving consumer behaviour across both metro and non-metro regions. According to A&M, startups are now applying these levers with increasing sophistication and speed.
“In today’s dynamic times, startups that think smart and act fast to evolve will lead the charge. At Meta, we’re proud to be partners in this journey, equipping them with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact,” said Sandhya Devanathan, Vice President, India and South East Asia, Meta.
The report shows that over 70% of surveyed startups have integrated AI into their operations. In marketing, 87% of adopters reported an average 30% improvement in cost per acquisition. AI maturity is reportedly highest in sectors like healthcare, edtech, and beauty, with use cases ranging from customer service automation to predictive analytics.
67% of startups surveyed are now pursuing omnichannel strategies, recognising the value of combining online discovery with offline retail conversion.
Tier 2 and 3 cities have become a major focus for expansion. The report notes that service-based startups are often entering these regions earlier than product-focused ones, using tools like vernacular content, WhatsApp, and regional influencers.
International expansion is also accelerating, with 52% of startups exploring markets such as the US, UK, and UAE.
Category diversification is another widely adopted strategy. The report finds that 84% of startups have expanded beyond their core offerings and 94% use digital tools like social listening and marketplace data to guide product development.
The creator economy has also become central to marketing efforts. The report says 88% of startups are now working with influencers or creators, with 60% beginning such partnerships within their first two years.
As the Indian startup ecosystem continues to evolve, the report positions these six growth levers as foundational elements for long-term scale and resilience.
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