New Delhi, Indian PSUs open to adopting digital solutions are emerging as a promising customer base for Industry 5.0 startups that are on the cusp of significant opportunities, says Barath Shankar Subramanian, partner at leading equity firm Accel risk
With India emerging as a key manufacturing hub, startups have a golden opportunity to innovate alongside large companies, Subramanian said.
“This is a crucial time for Indian startups to leverage their advantage on the global stage. “Indian startups are on the brink of an Industry 5.0 revolution, driven by global demand for resilient and diversified supply chains,” he said. Simply put, Industry 5.0 is the new buzzword in industrialization and automation, with a combination of humans working alongside technology and AI, leading to highly efficient workplace outcomes.
In the enterprise software space, particularly in the manufacturing and industrial sectors, Indian startups are on the cusp of “significant opportunities,” according to Subramanian.
Unlike their Western counterparts, these startups navigate a landscape relatively free of legacy systems. This absence not only streamlines their go-to-market strategy but also encourages adaptability, allowing innovative solutions to quickly gain traction, Subramanian said. "In particular, Indian public sector companies are emerging as a promising customer base, with its increasing openness to the adoption of digital solutions, as evidenced by the substantial average contract values reported by established players," he added.
Taking advantage of domestic opportunities, Subramanian noted, can help Industry 5.0 startups penetrate international markets as well.
The difference in average contract values (ACVs) between Indian and US/EU clients is still quite large: Indian ACVs are a third to a quarter of those in the West. However, by focusing on By building strong relationships and demonstrating value to Indian companies, startups can use this success to expand into markets such as the Middle East, EU and Southeast Asia, where contract values are much higher, Subramanian said.
His advice to founders: Identify large corporations where chief data officers or chief information officers wield significant authority and resources.
"CXOs can help startups validate problem statements and engage in product co-creation," he said. Entering the global market in the second or third year, particularly through Indian clients with an international presence, offers a faster expansion path compared to entering entirely new markets and acquiring customers, Subramanian emphasized.
Startups must recognize that founder-led sales are effective up to $5 million to $10 million in revenue, Subramanian said, adding that establishing a capable team becomes imperative to sustain growth beyond this threshold.
Startups are already showing fantastic applications in Industry 5.0, the Accel partner said, citing Detect Technologies and Zetwerk as examples. "Detect recognized that humans cannot detect security breaches and potential dangers every time, since the eye human can only perceive a limited amount. They combined the efficiency of digital solutions, such as cameras and monitoring algorithms, with real-time scanning to detect deviations, security violations and potentially fatal situations," he said.
These systems trigger alerts for timely interventions, significantly improving workplace safety. “Detect is helping companies like Vedanta and Tata Steel stay on top of security and optimization,” Subramanian said.
Zetwerk, in his opinion, has revolutionized the business-to-business manufacturing ecosystem in many ways. It is a universal manufacturing network that not only optimizes production but also reduces costs and streamlines supplier operations."Our early-stage Atoms startups built on Industry 5.0 (Spintly and Asets) are already making an impact "Spintly offers a frictionless, fully wireless, smartphone-based physical access control solution for commercial and residential buildings."
"They already have more than 250,000 users on the platform, are working with large global partners such as JLL, Anarock and Brookfield Properties, and global smart infrastructure companies such as Cisco Meraki and others to offer integrated solutions to enterprise customers," he added.
Asets has launched a cloud-based, multi-disciplinary AI-powered CAD, simulation and engineering design platform that helps Engineering Procurement Construction (EPC) and end-owner companies accelerate their early-stage engineering by 10x. They benefit from rapid deployment of engineering resources, which reduces the effort time and costs associated with engineering projects, Subramanian said.
With India emerging as a key manufacturing hub, startups have a golden opportunity to innovate alongside large companies, Subramanian said.
“This is a crucial time for Indian startups to leverage their advantage on the global stage. “Indian startups are on the brink of an Industry 5.0 revolution, driven by global demand for resilient and diversified supply chains,” he said. Simply put, Industry 5.0 is the new buzzword in industrialization and automation, with a combination of humans working alongside technology and AI, leading to highly efficient workplace outcomes.
In the enterprise software space, particularly in the manufacturing and industrial sectors, Indian startups are on the cusp of “significant opportunities,” according to Subramanian.
Unlike their Western counterparts, these startups navigate a landscape relatively free of legacy systems. This absence not only streamlines their go-to-market strategy but also encourages adaptability, allowing innovative solutions to quickly gain traction, Subramanian said. "In particular, Indian public sector companies are emerging as a promising customer base, with its increasing openness to the adoption of digital solutions, as evidenced by the substantial average contract values reported by established players," he added.
Taking advantage of domestic opportunities, Subramanian noted, can help Industry 5.0 startups penetrate international markets as well.
The difference in average contract values (ACVs) between Indian and US/EU clients is still quite large: Indian ACVs are a third to a quarter of those in the West. However, by focusing on By building strong relationships and demonstrating value to Indian companies, startups can use this success to expand into markets such as the Middle East, EU and Southeast Asia, where contract values are much higher, Subramanian said.
His advice to founders: Identify large corporations where chief data officers or chief information officers wield significant authority and resources.
"CXOs can help startups validate problem statements and engage in product co-creation," he said. Entering the global market in the second or third year, particularly through Indian clients with an international presence, offers a faster expansion path compared to entering entirely new markets and acquiring customers, Subramanian emphasized.
Startups must recognize that founder-led sales are effective up to $5 million to $10 million in revenue, Subramanian said, adding that establishing a capable team becomes imperative to sustain growth beyond this threshold.
Startups are already showing fantastic applications in Industry 5.0, the Accel partner said, citing Detect Technologies and Zetwerk as examples. "Detect recognized that humans cannot detect security breaches and potential dangers every time, since the eye human can only perceive a limited amount. They combined the efficiency of digital solutions, such as cameras and monitoring algorithms, with real-time scanning to detect deviations, security violations and potentially fatal situations," he said.
These systems trigger alerts for timely interventions, significantly improving workplace safety. “Detect is helping companies like Vedanta and Tata Steel stay on top of security and optimization,” Subramanian said.
Zetwerk, in his opinion, has revolutionized the business-to-business manufacturing ecosystem in many ways. It is a universal manufacturing network that not only optimizes production but also reduces costs and streamlines supplier operations."Our early-stage Atoms startups built on Industry 5.0 (Spintly and Asets) are already making an impact "Spintly offers a frictionless, fully wireless, smartphone-based physical access control solution for commercial and residential buildings."
"They already have more than 250,000 users on the platform, are working with large global partners such as JLL, Anarock and Brookfield Properties, and global smart infrastructure companies such as Cisco Meraki and others to offer integrated solutions to enterprise customers," he added.
Asets has launched a cloud-based, multi-disciplinary AI-powered CAD, simulation and engineering design platform that helps Engineering Procurement Construction (EPC) and end-owner companies accelerate their early-stage engineering by 10x. They benefit from rapid deployment of engineering resources, which reduces the effort time and costs associated with engineering projects, Subramanian said.
