BENGALURU: Start-ups are witnessing enhanced benefits by adopting a strong digital core on the cloud.
Over 80% of start-ups in the Enterprise Tech, Health Tech, Retail, and Logistics and AutoTech sectors have reported a substantial increase in revenue, underlining the significant positive impact of enterprise applications on start-up performance and success, according to an SAP India study that was done in collaboration with Zinnov Digital.
Launching the report on Wednesday in Bengaluru, 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."
He added that mission-critical Enterprise Resource Planning (ERP) systems on the cloud are powerful enablers that provide valuable insights and direction to navigate any challenge and accomplish their goals, including attracting investors, fair valuations, and retaining a competitive edge.
The study also said that 37% of start-ups plan to increase their spending on enterprise applications by more than 15% in 2023.
About 81% of start-ups cited automation and standardisation of processes across divisions with faster customisations as the primary benefit being derived by hosting enterprise applications on the cloud.
Sidhant Rastogi, Managing Partner at Zinnov Management Consulting, said, "In 2022, Indian start-ups faced significant challenges due to market headwinds and reduced valuations. Investment in the right technology and organisational 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."