Infusing new energy into startups

India has the potential of being a crucible for testing business plans and innovative ideas for global startups. Most start-ups in the US and EU are focused on their markets and specific needs. However, many are realising that to be truly global, their ideas must be exposed to the rigours of an emerging market. 

Switzerland has swiftly identified India as a market and testbed for its startups. Recently Blockchain Propulsion, an accelerator based in Zug entered India to get a first-hand view of how the market is evolving. It has decided to partner with government backed body Swissnex India. “This partnership paves the way for Swiss domiciled blockchain technology startups to access one of the largest digital markets in the world — India,” says Sebastien Hug, CEO of Swissnex India. 

The model being created by Swissnex symbolises the global aspirations of small companies. The ones with a long-term vision are moving beyond developed markets with a view for global scaling up. 

The process followed by Swissnex involves helping startups understand the importance and potential of India. As in most cases, small startups don’t have the ability to expand globally. Swissnex steps in to advise, mentor and facilitate entry into the Indian market. The process includes several weeks of coaching for the teams deployed in India. This ensures that the startups have a strong appreciation of the dynamics of the market as they begin to create products and services for the region. In the last six years, over 522 such companies have been coached while 58 are now doing business with India. 

A good example of this is the Swiss IoT startup Orbiwise which met Swissnex team at one of the roadshows in Geneva in 2013. Over the next two years, Swissnex kept Orbiwise informed of developments and opportunities in India. This led Orbiwise to bid for a large opportunity with Tata Communications in 2015 with support from Swissnex. The company won the bid and set up its team in India. Orbiwise manages nationwide IoT network of Tata companies in 40 cities and main corridors with the IoT device count running in hundreds of millions. 

Similarly Bestmile which focusses on autonomous and mobility solutions entered India a couple of years ago. Bestmile works with Gurgaon-based Hi-Tech Robotic Systemz for mobility solutions for India. Swissnex has opened offices in Shanghai, Bengaluru and Rio De Janeiro for startups domiciled in Switzerland. It is helping small companies enter various economies by “contextualising the market, helping them build content for their business, create visibility for Swiss startups and anchor collaborations with Fortune 500s for Swiss startups.”

Bringing smart young companies together is an important aspect of enhancing trade and investment linkages. Large conglomerates have the ability to exploit the gains of global growth, but smaller and smarter companies need a supportive system to expand beyond their home bases. There is much merit for Indian policy-makers to help Indian start-ups globalise. Partnerships between foreign and Indian start-ups can allow them to grow into several markets apart from their home countries. 

While accelerators and incubators in India are shepherding internal growth, there is need for collaborative structure that helps small companies go beyond the borders. In the era of fourth industrial revolution, globalising companies will be smart and scalable but not necessarily large and lumbering. India should encourage startups to use its market as a stepping stone for global expansion. This will inject more excitement and energy into the domestic startup eco-system. It will encourage small firms to think global and plan for markets in Europe, Africa or Latin America.