Focus East - Experts turn the spotlight on the quiet, but vibrant start-up success saga

Even though facing muted funding trends for some time now, the Indian start-up ecosystem is a thriving one. As per Statista, the sector received around $861 million in funding in 2023. The Indian start-up ecosystem is expected to rebound in 2024, translating into increased funding, public listings, and profitability.

Though the start-up movement started in Bangalore with a plethora of infotech and e-commerce entrepreneurships, Tier 2 and Tier 3 cities are increasingly claiming the spotlight from their metropolitan counterparts, becoming the favoured investment destinations in India, as per Statista.

Among all the regions in India, East is usually considered lagging behind in terms of start-up growth, however, given the vibrant and conducive market ecosystem in the East and North East, a highly aspirational youth population, strong government push to promote local enterprises, and a rapid transition to digital, it is only a matter of time when the start-up ecosystem in the Eastern part will see accelerated growth.

Adgully spoke to Gaurav Jalan, Founder & CEO, mPokket; Shromon Ghosh, Head of Marketing, EzeRx; and Waqas Lasania, Founder, Europe Girl Cosmetics, to understand the growth opportunities, extent, as well as the challenges impacting the entrepreneurial landscape in the East. They offer key insights into effective marketing tactics, government support initiatives, and the potential for growth and innovation. Their perspectives provide a holistic view of the evolving startup ecosystem in East India, highlighting both the promises and the pitfalls awaiting aspiring entrepreneurs.

Insights into the Eastern Startup Ecosystem

Gaurav Jalan paints a picture of a steadily maturing start-up ecosystem in East India. He emphasizes the role of government support, such as initiatives like Startup India, in fostering a conducive environment for entrepreneurial endeavours. He also highlights the region’s unique cultural identity and increasing demand for digital solutions as factors contributing to its growth. At the same time, he also acknowledges challenges like limited access to funding and infrastructure, suggesting that concerted efforts are needed to address these barriers for further development.

“With a focus on leveraging regional strengths and addressing existing barriers, East India’s startup ecosystem is poised for further development and contribution to the nation’s overall entrepreneurial landscape,” Jalan emphasized.

While describing the start-up sector in Eastern India as bright, with a diverse range of ventures, notably Kolkata, Shromon Ghosh also acknowledges the challenges stemming from the ecosystem’s nascency, particularly in terms of limited talent and infrastructure. Ghosh underscores the need to overcome these obstacles for long-term success, despite the existing unrealized potential.

Waqas Lasania provides a broader view, depicting the Eastern start-up ecosystem as rapidly growing and gaining prominence in recent years. He highlights its strategic geographic location, business-friendly regulations, and strong government support as key factors contributing to its success. He also emphasizes on the presence of world-class infrastructure, access to capital through various investment funds, and a diverse pool of talent attracted by the cosmopolitan lifestyle of the region.

According to Lasania, the key sectors driving the start-up ecosystem include technology, finance, logistics, e-commerce, and tourism. Additionally, he draws comparisons to Dubai’s start-up ecosystem, noting unique advantages such as its strategic location as a gateway between East and West. He also highlights the East’s reputation as a global business hub, attracting multinational corporations, investors, and entrepreneurs seeking opportunities in the region.

Effective marketing strategies in East markets

Jalan sheds light on the nuanced approach successful start-ups in East Indian markets employ to connect with their diverse audience. He emphasizes the importance of tailored marketing strategies, leveraging local influencers, and understanding regional nuances. Jalan advocates a balanced blend of traditional and digital media, with a focus on creating content in regional languages to resonate better with the local audience. “Research indicates that 70% of Indian consumers trust local language digital content more and 88% are more likely to engage with digital ads in their native language, compared to English,” he informed.

Adding further, he said, “Platforms such as Facebook and Instagram offer start-ups valuable opportunities to engage with their target audience by providing localized content and encouraging community-driven interactions. Leveraging these platforms enables startups to enhance their visibility, deepen engagement within the local community and foster stronger relationships and brand loyalty.”

Ghosh adds depth to the discussion by highlighting specific marketing strategies favoured by start-ups in the East. He mentions below-the-line (BTL) activities, peer-to-peer marketing, and digital and influencer marketing as successful tactics. Ghosh emphasizes the preference for big display advertisements, radio, and multiplex promotions in BTL activities, catering to the local population’s penchant for personal interaction and peer recommendations. Additionally, he mentions the effectiveness of celebrity and influencer collaborations in increasing brand visibility, citing the success of such strategies during the Durga Puja celebrations in West Bengal. “In 2023, Durga Puja celebrations in West Bengal are estimated to have generated over Rs 80,000 crore in business, with a 20% increase compared to 2022 through these strategies,” he informed.

Entrepreneurial ventures in the East: Opportunities & Challenges

Highlighting the remarkable increase in start-up recognition since 2016, Jalan underscores the role of government support programs like ‘Startup Assam’ in fostering a conducive environment for start-ups. Despite challenges such as limited infrastructure and resource accessibility, Jalan remains optimistic about the East’s emergence as a center of innovation and inclusive economic growth through flourishing entrepreneurial ventures.

Ghosh, too, emphasizes on the immense potential of the Eastern start-up scene, fueled by factors like land availability, electricity, water, and supportive government policies. He acknowledges positive signs such as increased government initiatives and a diverse range of MSME businesses. However, Ghosh also cautions that to fully prosper, the East must establish a firmer foundation compared to more developed regions of India.

Providing a comprehensive overview of entrepreneurial ventures in the East, Lasania emphasized on their rise amidst growing economies and supportive policies. He highlights the opportunities presented by large consumer bases, access to talent, and technological advancements. However, he doesn’t shy away from addressing challenges such as competition, regulatory complexities, and limited funding. He emphasizes the importance of innovation, differentiation, and strategic planning for startups to leverage opportunities and overcome obstacles in the dynamic East entrepreneurial landscape.