A naukri.com initiative
Analyticsindiamag
6d
238
Image Credit: Analyticsindiamag
Free PoCs are Killing Indian AI Startups
- A wave of frustration is sweeping through India’s AI and SaaS startup ecosystem, leading to what founders refer to as the 'Skip India Movement' due to the perception that Indian enterprises do not value startups' time and effort.
- The movement gained momentum as AI founders expressed exhaustion over providing multiple free proof of concepts (PoCs) to Indian customers without seeing substantial returns.
- Many startups find themselves stuck in endless sales loops as potential clients demand elaborate demos only to back out during commercial discussions.
- Despite some founders believing in focusing on the Indian market, others are shifting their attention to the US due to perceived better returns and respect for startups' offerings.
- Some argue that Indian enterprises leverage PoCs as bargaining chips to negotiate lower pricing, leaving many startups feeling emotionally drained by the process.
- The trend of skipping local PoCs in favor of targeting the US market is gaining traction among startup founders looking for better ROI and alignment with global product-market fit.
- While some founders believe in innovating for India's unique problems, others emphasize the need for international validation or pricing for Indian enterprises to take startups seriously.
- The prevalent practice of offering free PoCs in India is being criticized, with calls for a shift towards paid PoCs to ensure a more sustainable ecosystem for AI startups.
- The attitude of Indian enterprises towards startups, preferring international validation, and resistance to paying for SaaS products contribute to the challenges faced by AI founders in India.
- The message from India’s AI founders is clear: They are losing patience with the underdeveloped Indian market and are turning towards the US for better opportunities.
Read Full Article
14 Likes
For uninterrupted reading, download the app