Insights In Hindsight - Edition 13

Unicorns Are Powering the Auto Sector in India

In recent years India's entrepreneurial landscape has undergone a remarkable transformation. The COVID-19 pandemic, despite its challenges, acted as a catalyst for innovation and digitalization. Startups emerged as agile problem-solvers, addressing pandemic-related issues, and spanning healthcare to remote work solutions. Today, India boasts over 100,000 startups, including 108 unicorns that are powering diverse businesses across sectors, such as health, technology, fintech, edtech, digital commerce, renewable energy, and automobiles. It is no exaggeration to say that India is now a global hub for startup ecosystems, ranking as the third-largest startup ecosystem worldwide.

The unstoppable rise of startups

India’s startup ecosystem has thrived on various private investments, ranging from seed money to angel investments, and venture capital to private equity funds. Recognizing their potential for economic innovation and growth, the Indian government played a pivotal role by simplifying regulatory and legal frameworks. Initiatives like "Startup India" and relaxed foreign direct investment (FDI) rules attracted foreign capital, creating a welcoming environment for investors. Besides a government-led supportive environment for startups, we must also recognize and acknowledge the sheer determination, resourcefulness, innovation, and expertise of our entrepreneurs. With a solid understanding of global best practices and hands-on experience or exposure to digitalization, they are leveraging cutting-edge technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and blockchain throughout the product/ service lifecycle - from testing to application. The Huron India Future Unicorn Index 2022 predicts that there will be as many as 122 future unicorns across 25 Indian cities in the next two to four years.

Auto Sector - A Beacon of Opportunities

The Automotive Mission Plan 2016-2026 (AMP 2026) sets an ambitious goal to make the Indian automotive sector the largest job creator in the nation, while significantly boosting its contribution to the GDP. If these projections materialize, India is poised to become the third-largest global automotive market by 2026. While traditional auto sector players are adapting to the evolving market, it is the startups that are spearheading novel solutions and reshaping industry dynamics. Digitalization and evolving consumer expectations are certainly driving unprecedented changes in this sector. However, it is the technological advancements, such as intelligent mobility and electric vehicles (EV) that are the true game-changers for the Indian auto sector. Essentially, our auto sector is experiencing what I might call a “full-body transformation”:

Evolving Business Models: Think ride-sharing, vehicle-sharing, and e-hailing

Cutting-edge Vehicles: Real-time vehicle tracking, driverless technology, and remote fault detection and corrections

Supply Chain Revolution: Featuring augmented reality and robotics

Startups are at the forefront of this transformation in the Indian auto sector.

• Ola, a notable ride-hailing company in India secured a substantial $1.1 billion investment infusion to fortify its AI and ML capabilities, with a mission to develop exclusive, cost-effective, and high-performing commuter vehicles, tailored for India’s busy roads.
• Intuition Systems, a leading fintech company is crafting a fleet of intelligent, semi-autonomous electric and hybrid vehicles to navigate India’s bustling and congested streets. Harnessing cutting-edge AI and deep-tech, this venture is set to reshape urban commuting.
• In the EV segment, the government’s push for EV adoption has triggered a flurry of innovation - not only in vehicle manufacturing but also in allied areas, such as vehicle diagnostics, battery technology, and more. This has led to exciting collaborations between major automakers and nimble EV startups, with emerging startups, such as Ather Energy and Tork Motorcycles gaining momentum, and attracting significant investments through the angel investors and institutional funding routes. 
• The pandemic’s impact on consumer behaviors, coupled with the global semi-conductors shortage, and prolonged wait times for new vehicles provided a jumpstart to the used car segment, where startups, such as Cars24, Spinny, CarDekho and Dhoom have all entered the billion-dollar club at breakneck speed. These companies are ushering in a new era, bridging the gap between new and used car ownership, and benefitting buyers, sellers, aggregators, and most importantly, the environment.

Technological advancements are driving disruption and innovation across sectors, including India’s automotive industry. The remarkable growth of India's startup ecosystem, with a nine-fold increase in investments and seven-fold increase in funding from 2015 to 2021, promises an electrifying future for the Indian auto sector.

In the next race – for autonomous cars, there may be many hurdles (both, cultural and regulatory) before achieving maturity and scale. A few months ago, Bengaluru-based start-up Minus Zero unveiled what it claims is India’s first autonomous vehicle. And it will not be surprising if an Indian unicorn finds itself amongst the top players in this space in the years to come. The future is undoubtedly exciting for India's auto industry, with unicorns leading the way.

#Indiaautosector #Indianunicorns #Indianstartupecosystem #startupsinIndia #EV #innovation

Snippets of Articles That May Interest You        

Perpetual Client Delight - Myth or Reality?

In a competitive landscape that rides on intense digitization, businesses have quickly leveraged multiple touchpoints and customer engagement opportunities to achieve the desired customer acquisition and retention rates. On the flip side, customers have started demanding continuous innovation, better product or service quality, and more personalized experiences in exchange for their loyalty. But CXOs who work collaboratively, leverage data and technology, and drive personalized, brand-consistent experiences keep their customers in perpetual delight and ultimately accomplish the much sought-after customer loyalty. Read on

#customerretention #customerloyalty #brand-consistentexperiences #customerdelight #productorservicequality

CSR: An Organizational Integrity Tool or Just a PR Stunt?

From a mandatory obligation to a powerful social impact tool, the concept and significance of CSR has seen a huge change over the last few decades. Is your organization building a #CSR culture to meet your sustainability goals? Read on

#CSR #corporatesocialresponsibility #sustainabilitygoals #corporateintegrity #CSRstrategy

Updates from Practus        

Episode 3 of my podcast series, Bizdom, is live!

Join us for a fascinating episode with “the disruptor in the world of consulting” and the Co-Founder of Practus, SVenkat. From understanding how businesses create wealth for their shareholders, empowering teams irrespective of seniority, and transforming consulting into active implementation of solutions, to chess, quiz, gardening, and filter coffee – this episode will demand your complete attention.

Listen here: https://linktr.ee/bizdom

#Bizdom #WisdomFromBizdom #wisdom #business #life #workandlife #knowledge #entrepreneurship #consulting #consultancy Practus

Practusians recently wrapped up a fruitful day in #Gurukool, our experiential learning and development initiative, aimed at imparting skills and knowledge for holistic professional development.

Gurukool is dedicated to empowering Practusians for growth and fostering excellence in their professional journey by helping them remain a #StudentForLife. Here's more

That's all for this month! See you all next month!