Startups Are Using AI, Omnichannel to Expand Worldwide & Have Deeper Local Reach

A report by Meta in collaboration with Alvarez & Marsal India highlights some of the primary strategies that are giving rise to young firms reaching a deeper domestic perspective.

Startups are harnessing the power of AI and omnichannel strategies to not only expand their global footprint but also deepen their roots in local markets. In a groundbreaking report by Meta, in partnership with Alvarez & Marsal India, six transformative strategies have emerged that illustrate how ambitious young companies are successfully navigating the waters of international expansion and enhancing their presence at home. 

Startups are harnessing the power of AI and omnichannel strategies to not only expand their global footprint but also deepen their roots in local markets. This comprehensive study identifies six essential drivers expected to define the future landscape of Indian entrepreneurship.

They include the embrace of AI technology, cross-border growth, omnichannel strategies, deeper engagement with Tier 2 and Tier 3 cities, diversification across categories, and fostering creative brand narratives alongside influencer partnerships.

“In today’s rapidly evolving world, startups that think smartly and act decisively will lead the charge,” said Sandhya Devanathan, Vice President for India and Southeast Asia at Meta. “At Meta, we take pride in being partners in this journey, equipping startups with cutting-edge AI tools that empower them to scale their operations and transform visionary ideas into meaningful impacts.”

Himanshu Bajaj, Managing Director and Head of Alvarez & Marsal India and the GCC, observed a remarkable evolution in the mindset of Indian startups regarding expansion, not merely as a path to growth but as a commitment to building sustainable businesses focused on creating lasting value. 

“AI integration, tiered market entry, and omnichannel approaches are no longer futuristic aspirations; they are foundational strategies for success today,” emphasized Bajaj. “What stands out is the impressive sophistication with which early-stage startups are embracing these powerful levers.”

With over 70 percent of startups now seamlessly integrating AI into their core functions, the results are compelling. “We utilized these advanced tools to optimize our marketing efforts, and the outcomes have been nothing short of extraordinary,” shared Shrawan Daga, Founder of Krishna’s Herbal & Ayurveda.

Approximately 67 percent of small firms have adopted omnichannel models to cater to the modern consumer journey, which often blends online discovery with offline purchasing. “Successfully tracking online investments that lead to in-store visits and offline sales is crucial for an effective omnichannel strategy, particularly as digital channels remain our primary advertising focus,” explained Ayushi Gudwani, Founder of FS Life.

The report indicates that nearly all startups are ambitiously venturing into Tier 2 and Tier 3 markets to address soaring demand and capitalize on untapped supply opportunities. “India’s next billion consumers are not just waiting for their turn; they are leapfrogging ahead,” declared Swagat Sarangi, Co-founder of Smytten. 

“In these vibrant markets, relevance lies not in merely scaling down offerings but in engaging with empathy, accessibility, and trust.” Additionally, about 52 percent of small firms are breaking new ground with cross-border expansion, tapping into vast markets and the growing global appetite for Indian-origin products. 

The United States, the UAE, and the United Kingdom have emerged as the premier export destinations. “Our global footprint has expanded successfully, realizing an impressive 30 percent higher ROI in these new markets,” asserted Aakriti Rawal, Co-founder of House of Chikankari.

The report further reveals that 84 percent of startups are diversifying beyond their foundational offerings, leveraging synergies across product lines, customer groups, and distribution channels. “As Noise broadens its global horizons and enters new categories, our mission revolves around creating performance-driven smart technology that elevates the ‘Make in India’ narrative on the world stage,” said Gaurav Khatri, Co-founder and CEO of Noise.

Moreover, the study highlights that a striking 88 percent of brands are now collaborating with creators, including niche influencers and celebrated personalities, to cultivate community-driven storytelling. 

“Partnering with these creators empowers us to share genuine, relatable stories that nurture trust and emotional connections,” remarked Suramya Jain, Co-founder of RAS. With these dynamic strategies in play, it’s clear that India’s startups are not merely reacting to global trends but are actively shaping their own future.