FY24 Brought Challenges, But FY25 Looks Brighter
Indian startups faced a rough FY24 with funding declines, valuations drops, and government regulations. This led to cost-cutting measures, including reduced IT spending and hiring freezes.
FY25: Time for Expansion and Growth
With positive market sentiment and anticipated funding increase (36% YoY, as per Inc42), Indian startups are now planning to accelerate growth in FY25. This translates to increased spending on:
- Advertising: Over 76% of surveyed founders plan a 20-30% increase.
- IT: 74% of startups aim for a 10-30% rise.
Why the Increase? Strategic Alignments
- Scaling Up: Doubling revenue, expanding customer base, entering new markets are key goals for FY25.
- Tech Optimization and Customer Engagement: Increased IT and ad spending aligns with these goals.
Other Contributing Factors
- Expected Funding Uptick: Inc42 predicts a 36% rise in funding, enabling higher expenses.
- Booming Indian Ad Market: Expected to grow at 11.4%, making it an attractive channel.
- Digital Focus: Indian startups, already digital-native, will leverage digital advertising even more.
- AI & ML Driving IT: Companies are investing in AI/ML tech, leading to higher IT budgets.
- GenAI Taking Center Stage: 84% of Indian CEOs plan to invest in generative AI, boosting IT spending.
Conclusion
The planned increase in IT and advertising spending aligns with anticipated growth and expansion goals. With factors like increased funding, a thriving ad market, and advancements in AI/ML, FY25 seems perfect for Indian startups to boost their tech and marketing efforts.
Read more.. Marketing News, Advertising News, PR and Finance News, Digital News.
