Three in four early-stage Indian startups want to expand to the US, according to a survey conducted by Alariss Global, the first tech-enabled global expansion marketplace. The survey reached out to over 1000 Indian startups, of which 42.9 percent were Series A funded. The rest were seed-funded or bootstrapped.
Out of the respondents, 76.2 per cent wish to take their products to the US but also highlighted the hurdles they face. Many respondents also stated that they have tried entering the US market in the past but had their hands burned due to a variety of reasons, especially hiring the wrong local person to lead sales for them, and were forced to delay their plans. According to the respondents, the biggest hurdles that get in the way of expanding to the US are the cost of expansion, hiring, and managing overseas teams.
In addition, the survey also found that over 95 per cent of the scale-up startups that are looking to expand in the US wanted a localized partner who would manage the sales vertical in the country. 24 per cent said that they also wanted a partner that could provide a local tax accountant, and 19 per cent were interested in a local lawyer.
Alariss Global helps Indian companies set up a marketing and sales team in the US and plan their go-to-market, all in a matter of days. “Indian startups have a strong interest and capability to take their products to a market like the US. As barriers to entry reduce and access to global resources become more democratised, I think the time is right for Indian companies to grab the opportunity and make a global impact,” said Joyce Zhang Gray, chief executive officer (CEO) and co-founder of Alariss Global.
Out of all the respondents, almost one-half are based in Delhi NCR. More than 76 per cent of the respondents are in the services and SaaS industry.
In the past few years, several Indian SaaS companies have made a mark globally thanks to their cost-effective world-class products and fast turnaround time. Indian mobility, food-tech, and hospitality startups have also been able to expand globally. According to a 2020 report by the Confederation of Indian Industries (CII), 155 Indian companies have created nearly 125,000 jobs in the US with investments of over $22 billion.
However, scaling to a market like the US is still not an easy task for small and early-stage companies.
In most cases, companies that want to expand to the US need to spend considerable money and time in order to do so. More often than not, the CEO or the executive team has to make a visit to the US in order to set up operations. The process can take up to 6 months and isn’t always successful.
Headhunting firms are effective but expensive. This becomes challenging for early-stage companies that have limited funding and resources. Other options, such as using job boards or LinkedIn are time-consuming and unreliable. “The survey indicates that Indian startups need turnkey solutions that can help them execute a reliable go-to-market strategy in the US,” Joyce further added.
Alariss Global helps Indian startups achieve their global growth not just by providing comprehensive solutions but also by acting as a strategic guide and partner. Alariss has entered India, having already identified thousands of high-potential Indian companies that could go to market in the United States in the next few years. Currently also serving startups from China, Singapore, Nigeria, Germany, Canada, Spain, the UK, and Israel, Alariss has made a special commitment to India by opening its first overseas office here.