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Experts Perspective on Changing Start-up Dynamics
Experts Perspective on Changing Start-up Dynamics

December 31, 2021

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Experts Perspective on Changing Start-up Dynamics

Start-ups nowadays have been shifting their focus and strategies. They are not just focusing on growth but also on long-term business sustainability, product differentiation, and much more. A recent round table chaired by many prominent industry experts put their perspective on various start-up scenarios. So, what is changing in the current start-up era is interesting to see:

  1. Customer centricity: Focus on customers has increased a lot. Product development by keeping a customer-centric approach always helps in building the right product. If the product is right, it has easy acceptability and growth in the market after launch.  Start-ups are addressing multiple needs of customers by leveraging technology which leads to more precise and efficient outcomes.

 

  1. Business sustainability: Start-ups are making sure that their business is sustainable in the long run and should not perish with time which has been the case for many in the past. Even if the growth is slow, the start-up should be able to digest the market’s ups and downs.

 

  1. Scalability: During the growth phases, the solution should be scalable and should be able to take the required load both from the technology perspective and regular operations perspective.

 

  1. Problem-solving focus: Start-ups shifting focus towards solving a real-time problem which directly impacts consumer

 

  1. Rural inclusion of India in financial services: A very important area where start-ups should focus and have started focusing on. Rural inclusion not only helps in building the nation but also helps in business scaling. Some solutions like enabling payment with the internet (Since mobile smartphone penetration is less hence these solution helps a lot) etc. are helping rural empowerment a lot.

 

  1. Enabling people on e-commerce: Another important area of focus is to bring people online which creates demand and empowers them. E-commerce is one of those markets which have grown over 20 times in the last decade.

 

  1. Using mobile penetration with a focus on unbanked sectors: Fintech has been the lifeline and to make it more intense and penetrating, start-ups are building solutions to bank the unbanked (areas where banking has reached yet) sector.

 

Innovation should be a continuous process at every stage and start-ups have been following this rigorously. Many new and innovative solutions have been developed by start-ups which are creating a magnificent impact on the lives of many people. What kind of new solutions are coming in the market:

  1. Buy Now Pay Later (BNPL): a new revolution in the payment industry which allows a person to buy the product with the option to pay for the same later. This solution has taken the market by storm and many e-commerce and fintech giants are entering into this business.

 

  1. Video KYC: A powerful way to collect “know your customer details” from home itself.

 

  1. Neo banking: A bank that does not need any physical presence is booming in the market, thanks to the pandemic and the digital wave. They offer a variety of solutions and services targeted at customers like SMEs, tech-savvy millennials, and low-wage classes.

 

  1. Open APIs: Exposing APIs for product development has led the market to take a new shape. Many start-ups are building solutions by using such APIS. Many tech giants and BFSI companies are exposing their APIs to help companies build innovative solutions over the same.

 

  1. Embedded Finance: A financial system where a non-banking financial player can offer banking services. A model which is still in the nascent stage but can offer huge potential.

Building new solutions are at the core of any ecosystem and a lot of development and thinking is required to make new solutions building more innovative. A lot of work is happening around product-led thinking, platforms that can help you build a new product and take you to next level. From the sector perspective last mile payment, investment advisory space, aggregation mechanism, insurance, payment-led use cases are growing and a lot of new solutions are getting developed around the same.

Integration of corporate and startups holds great importance in the growth of the ecosystem and hence a healthy integration is important for a successful collaboration:

  1. Experimentation: Going for the start-up based on specific needs of the corporate or harvesting them through incubation and acceleration programs and then choosing the optimal star-ups
  2. Partnership: Funding the start-ups that solve the problem of corporates.
  3. Choosing the start-up: Choosing the right start-up depends on multiple parameters like
    1. Product they are offering
    2. Technology stack they are working on
    3. Culture of the start-up
    4. Mentor network of the start-up
    5. No allegations on the start-ups from a legal perspective

So, right from the changing start-up focus to new solution development, a lot is happening in the industry. The ecosystem now needs to focus more on building newer solutions and look for successful collaborations to build this ecosystem together.


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