SUMMARY
Global expansion is not only a key priority and milestone for startups and young businesses, but it is also a significant challenge in their growth path
According to 2021 survey results by TurningIdeas Ventures, 42% of Indian startups were gearing up to tap the global market in 2022
Indian companies looking to go global should consider fast-growing cities and assess how they can benefit from the existing business culture, ecosystem, talent pool, and market to achieve positive results
Global expansion is not only a key priority and milestone for startups and young businesses, but it is also a significant challenge in their growth path. Establishing a cross-border footprint has become critical for Indian companies looking to expand globally. However, in order to grow effectively in cross-border markets, a few key factors must be considered.
To begin, businesses must understand the economic landscape in which there are strong investment incentives and a thriving ecosystem. Locations matter too. Startups should look for locations that will attract the best talent available. Finally, when it comes to making a move, everyday practical details such as time zones, language, and proximity to other markets are critical considerations.
In terms of expansion, Indian companies have a number of options as their products and services become more important to businesses around the world. According to 2021 survey results by TurningIdeas Ventures, 42% of Indian startups were gearing up to tap the global market in 2022.
Naturally, entrepreneurs will be considering and weighing the best cities to expand to at this point. According to Startup Genome, London is one of the best places in the world to start, relocate, or expand a business. In fact, it is the only European city in the top ten, tied with New York for second place behind Silicon Valley.
Indian companies looking to expand their operations outside of India should consider fast-growing cities and assess how they can benefit from the existing business culture, ecosystem, talent pool, and market to achieve positive results. Given that London is already significantly ahead of other cities in terms of allowing companies to thrive in their region, Indian organisations seeking to expand their footprint abroad will have a significant advantage.
Here is a breakdown of a few key aspects to consider when making plans for cross-border expansion:
Exploring Growth Capital From Foreign Investors
One of the most significant challenges that businesses face when expanding abroad is a lack of guaranteed funding. Establishing relationships on the ground with local business growth agencies and institutions can assist companies in connecting with the local ecosystem. This will also help them build relationships with the venture capital and investor communities in an effort to find ways to bolster their financial stability.
This is a significant pull for fast-growing Indian companies and why so many companies opt to set up in London, given the city’s strengths as a financial and investment centre. According to a recent Global Power City Index (GPCI) report, London is the world’s leading city in terms of its ability to attract people, capital, and enterprise from around the world.
According to the latest Startup Genome Report, London will have more than 1,370 venture capitalists (VCs) by 2021, far more than any other European city, making it a huge draw for Indian companies looking to expand into a foreign market. Given that the UK capital is the most appealing tech hub for international VC investment, Indian companies have an abundance of funding opportunities here. According to a recent report, in 2022, London firms have raised $11.3 Bn, significantly more than Paris ($5 Bn) and Berlin ($2.4 Bn). This makes London the perfect city for future funding, especially for high-growth Indian unicorns.
Hiring International Talent
Hiring senior executives from global talent pools has become a popular practice among Indian companies. New recruits with international backgrounds are critical to supporting transitions into new markets, whether in established companies or startups. Fluency in the English language, as well as knowledge of geopolitical factors affecting markets, are examples of important characteristics that will provide much-needed added value for companies looking to expand abroad later on.
Furthermore, companies can benefit from working with colleagues who have a well-established business and social network in their home country, as well as well-honed leadership skills, a strong work ethic, and a keen sense of cultural and economic trends.
Making The Most Of The Economic And Social Landscape
No matter how brilliant and unique a company’s offering is, it is critical to be well positioned to capitalise on incoming opportunities. London provides a stable backdrop and a variety of benefits that enable businesses to do so. There are numerous advantages for growing businesses, ranging from the city’s relatively low taxation economy, nurturing regulations, and pro-business ecosystem to its diverse and skilled talent pool and advantageous time zone.
When considering expanding into a new city, consider the quality of life. It not only helps people remain psychologically, physically, and spiritually happy and productive, but it also attracts more people. Consumption of goods and services, housing, mobility, medical care, education and development, public spaces, entertainment and recreation, ecology, cleanliness and hygiene, comfortable climate, and resilience to emergencies are some of the quality-of-life factors to consider.
Present And Future Business Growth
For the fourth year in a row, India has been the second largest investor in the United Kingdom. Indian businesses establishing themselves in London come from a variety of backgrounds.
According to a Grant Thornton report published in 2022, 84% of all Indian diaspora-owned businesses in the UK are in sectors such as hospitality, healthcare and pharmaceuticals, retail, real estate and construction, food and beverage, technology and telecoms, and business services. Financial services, engineering and manufacturing, tourism and leisure, automotive and energy, and natural resources make up the remaining 16%.
To summarise, the wind of growth is blowing in the direction of creating a significant cross-border presence for Indian companies.
So, leaders and entrepreneurs, now is the time to strike while the iron is hot. Globalisation and technological advancements have created an ecosystem in which excellence, regardless of origin, is celebrated.
