70% of Start-ups Believe Enterprise Technology Propels Hypergrowth & Better Valuations: SAP – Zinnov Study

Press Release

Implementing Enterprise Applications critical to grow sustainably and scale across adjacencies

Bengaluru, August 02, 2023– SAP India, in collaboration with Zinnov Digital, today launched new research revealing that Indian startups are increasingly seeing enhanced benefits by adopting a robust digital core on the cloud. Remarkably, over 80% of start-ups in the Enterprise Tech, Health Tech, Retail, Logistics & AutoTech sectors have reported a substantial increase in revenue, underlining the significant positive impact of enterprise applications on start-up performance and success.

Titled ‘Driving the next phase of sustainable growth for Indian Start-ups in 2023 and Beyond,’ the study of 115 startups also suggests that start-ups will continue to invest in enterprise technology platforms, driven by their proven ability to deliver business outcomes and ROI. Some of the key benefits of enterprise applications include top-line acceleration and control on the bottom line, quick revenue recognition, and handling complex billing based on contracts and consumption for differentiated service lines.

Announcing the findings of the survey, Sanket Deodhar, Vice President- Digital Natives and Startups, SAP India, said, “Indian start-ups today require adequate tech infrastructure to help them diversify business, scaling up operations and acquisition and retention of the right talent. Mission-critical Enterprise Resource Planning (ERP) systems on cloud are powerful enablers that provide valuable insights and direction to navigate any challenges, and accomplish their goals, including attracting investors, fair valuations and retaining a competitive edge.”

Key findings from the report:

Best-run start-ups run on a modern digital core

  • Technology remains centre stage, influencing how startups grow sustainably.
  • ~74% of startups in India have reported direct benefits from implementing enterprise applications.
  • 24% of startups believe that achieving maturity in their business model, driven by robust technological capabilities and scalable operations, plays a crucial role in attracting investors.
  • About 68% of respondents reported a strong growth in revenue after adopting enterprise technology solutions, leading to an increase in their valuations.

Enterprise tech on the cloud is the future enabler

  • Start-ups will continue to prioritize enterprise technology as a critical aspect of their investment to navigate the next phase of growth and development.
  • 37% of the start-ups plan to increase their spending on enterprise applications by more than 15% in 2023.
  • 81% of startups cited automation and standardization of processes across divisions, with faster customizations as the primary benefit being derived by hosting enterprise applications on the cloud.
  • Adoption across the public cloud is set to grow by 2X, whereas the private cloud promises a ~50% increase in adoption, indicating a high focus for start-ups to shift their workloads to the cloud.

Addressing Challenges, Indian startups stay resilient.

  • Despite the funding winter and dynamic market conditions, Indian startups continue to grow and there is no sign of investments slowing down for high-performing start-ups in the coming years.
  • More than 75% of start-ups point towards metrics such as revenue generated in the past year, product and service margins, and market share based on traction, for determining valuations.
  • 81% of start-ups reported customer sentiment as one of their biggest business concerns, indicating the importance of customer acquisition, experience, and servicing metrics.
  • 70% of respondents noted that Partner evaluation and lack of in-house knowledge to manage remain the top challenges for start-ups while implementing enterprise application solutions.

Commenting on the study, Sidhant Rastogi, Managing Partner at Zinnov Management Consulting, said, “In 2022, Indian start-ups faced significant challenges due to market headwinds and reduced valuations. As we enter 2023, we remain optimistic that investment in the right technology and organizational augmentation can help start-ups navigate the economic slowdown caused by the recession and other macroeconomic factors. By doing so, they can ramp up valuations and revenue and achieve sustained growth.”

You can read the full study here

About SAP

SAP’s strategy is to help every business run as a sustainable, intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 87% of the world’s total global commerce touches an SAP system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into sustainable, intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit www.sap.com.

About Zinnov

Founded in 2002, Zinnov is a global management and strategy consulting firm in New York, Santa Clara, Houston, Seattle, Bangalore, Gurgaon, Paris, Tokyo, and Pune. With a team of experienced consultants, subject matter experts, and an extensive advisor network, Zinnov assists Software companies, Global System Integrators, Enterprises, and Private Equity firms in developing actionable insights that help them create value – across dimensions of revenue and optimization.


For media inquiries, please contact:

SAP India
Deepika Gumaste: deepika.gumaste@sap.com

Genesis BCW
Shristi Mahnot: Shristi.Mahnot@genesis-bcw.com