Global Expansion Strategies for Indian Startups The journey from being a successful local player to a thriving global entity involves various challenges, including market entry strategies, cultural adaptation, and regulatory hurdles.
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Indian startups have increasingly set their sights on global expansion, driven by robust innovation, a rapidly growing economy, and a maturing investment ecosystem. While breaking into international markets presents exciting opportunities, it also requires careful planning, capital efficiency, and strategic decision-making.
The journey from being a successful local player to a thriving global entity involves various challenges, including market entry strategies, cultural adaptation, and regulatory hurdles. At the Tech and Innovation Summit 2025 in Bengaluru, prominent venture capitalists and startup investors shared insights on how Indian startups can successfully navigate this transition.
Key Considerations for Global Expansion
Jayesh Bavle, CFO at Bertelsmann India Investments, emphasised the importance of prioritisation when considering global expansion. He advised founders to assess whether they have the bandwidth and capital to scale internationally.
"It's not just about launching the same product in a different country—there's localisation, planning, and strategy involved," he said. Bavle also highlighted that companies should look for adjacent markets—either in terms of product fit or operational capabilities—to ease the expansion process.
Similarly, Vikram Ramasubramanian, Partner and Chief Investment Officer at Inflection Point Ventures (IPV), highlighted the need for getting the home market right first before scaling globally. "The mantra is: Nail it before you scale it. Expanding too rapidly can lead to missteps. Understanding market dynamics, customer behavior, and cultural nuances is key," he noted.
Finding the Right Partners and Anchors
One of the most critical factors in global expansion is building the right local connections. According to Bavle, when startups enter new markets, they need an anchor person—someone who understands the regional market, customer preferences, and distribution channels. "You can't sit afar and build in a different country. You need someone on the ground who can execute," he explained.
Ramasubramanian shared an anecdote from his portfolio: a voice-based AI startup that expanded into Europe and the Middle East. The company's CEO and CTO continued product development in India while hiring a seasoned sales veteran to establish business relationships and drive sales in new geographies. This approach ensured that product innovation remained strong while market penetration was handled by an expert with local knowledge.
Another example came from BlueSmart, the EV ride-hailing company. "They first nailed operations in Gurgaon, then Bengaluru, and only then expanded into Dubai," Ramasubramanian noted. "For every new market, they had a dedicated team to oversee local decision-making."
Different Approaches to Market Entry
Not all startups take the same approach when expanding internationally. Bavle shared insights from a SaaS company that adopted multiple strategies across different countries:
- Distributor Model: In one country, they partnered with an established distributor to handle sales and local operations. This approach provided quick market access at a lower cost but limited scalability.
- Direct Entry: In another country, they set up their own entity, hired a local sales team, and managed operations independently. While costlier, this strategy gave them greater control over growth.
The key takeaway? The easiest path is not always the best path. While distributor partnerships offer immediate traction, they may create long-term challenges if the startup later wants direct market control.
Choosing the Right Investors for Global Growth
Both Bavle and Ramasubramanian agreed that founders should seek investors with global exposure who can provide not just capital but also strategic guidance and industry connections. "Luckily, India's investor ecosystem has matured. Many funds today offer the right mix of capital and expertise to help startups expand abroad," Bavle said.
Interestingly, Ramasubramanian highlighted that customers themselves can be powerful entry points. If an Indian startup's product resonates with the non-resident Indian (NRI) community, word-of-mouth marketing can naturally drive international demand. "For instance, in the GCC (Gulf Cooperation Council) market, NRIs often introduce Indian brands to their networks, accelerating adoption."
Global expansion is a long-term strategy, not just an opportunistic move. Indian startups must carefully evaluate market conditions, ensure product-market fit, and leverage the right partners and investors to de-risk the journey. Whether through strategic hiring, distribution partnerships, or direct market entry, the approach must align with the company's resources and long-term vision.
As Indian startups increasingly look beyond domestic borders, the world truly becomes their oyster—but only if they scale smartly, build the right networks, and adapt their strategies to new markets.
