Indian Startups Pursue Growth Through Overseas Acquisitions
Consumer brands such as Lenskart and Oyo are also expanding, with Lenskart generating 40% of its revenue from overseas o… Notably, 40% of Lenskart's revenue now comes from its overseas operations. Investment and Market Trends In the first half of 2025, Indian startups raised $5.7 billion, reflecting an 8% year-over-year growth in funding.
In 2025, Indian startups recorded a significant milestone with 26 outbound deals, marking the highest year on record for mergers and acquisitions (M&A) activity outside of India. This surge underscores a strategic pivot towards international expansion as startups seek to bolster their growth through overseas acquisitions.
Strategic Focus on Southeast Asia
Indian startups are increasingly eyeing Southeast Asia as a key market for expansion. Countries such as Indonesia, Vietnam, and the Philippines are focal points for this growth strategy. The fintech sector is at the forefront of this expansion, with Indian firms leveraging their advanced digital payments ecosystem to establish a foothold in these markets.
Consumer brands like Lenskart and Oyo have also been active in their international pursuits. Lenskart, for instance, operates 656 stores outside of India, with locations in Japan, Singapore, the United Arab Emirates, and across Southeast Asia. Notably, 40% of Lenskart's revenue now comes from its overseas operations.
Leveraging Similarities and Overcoming Challenges
A key factor driving the outbound expansion is the similar stages of digital adoption between India and Southeast Asia. These regions share common challenges that Indian startups have previously navigated, making it easier to tailor products and services to local needs. Additionally, relaxed regulations in these markets facilitate smoother expansion efforts.
Despite these advantages, startups face hurdles such as licensing requirements and data privacy concerns. To address these challenges, they often rely on the Indian diaspora for skilled talent, which aids in the adaptation of products to meet local demands.
Exploring New Frontiers in Africa
Beyond Southeast Asia, Indian startups are also setting their sights on African countries for growth opportunities. This interest is driven by the continent's burgeoning markets and potential for digital transformation. As these startups expand, they bring with them innovations from India’s advanced tech and digital sectors, setting the stage for further international collaborations.
Investment and Market Trends
In the first half of 2025, Indian startups raised $5.7 billion, reflecting an 8% year-over-year growth in funding. The e-commerce and fintech sectors have emerged as the top-funded domains, with notable investments fueling their expansion. During this period, five startups achieved unicorn status, further highlighting the vibrancy of India's startup ecosystem.
Bengaluru continues to lead as India's most funded startup hub, attracting significant investor interest. Notably, the focus of investors is gradually shifting towards artificial intelligence and hardware, indicating evolving trends in the startup landscape.
Overall, the robust M&A activity, coupled with strategic international expansions, underscores the dynamic nature of Indian startups as they navigate new markets and opportunities globally.