Cyril Solomon’s Post

Indian Startups Powering IT Giants Growth Amid Funding Crunch Amid a funding crunch in the startup ecosystem, tech giants are capitalizing on the moment to acquire innovative Indian startups. These smaller firms, specializing in fields like AI, semiconductor technology, data analytics, and spacetech, bring the agility and disruptive solutions that larger companies often need to stay competitive. Why is this happening? With global tech spending still in a cautious phase, especially in discretionary areas, IT firms are strategically investing in startups to fortify their capabilities and future-proof their offerings. By acquiring niche talents and breakthrough technologies, they can quickly address gaps in their portfolios and pivot toward high-value segments like design and AI without the time and resource investment needed to build these solutions in-house. This approach, dubbed “Solutions to Valuations,” highlights the significant return on investment these acquisitions can bring. For example, a relatively small investment in a startup can yield new revenue streams, as IT firms leverage these innovative solutions across their larger client bases. This synergy not only boosts revenue but can also elevate valuations, making these acquisitions a powerful growth strategy. The benefits are mutual: startups gain crucial resources and exposure to extensive markets, while tech firms enhance their offerings and competitive edge. In times of tighter funding, these partnerships are reshaping the tech landscape, fueling growth and ensuring that innovative talent continues to thrive.

NelsonHall Principal Research Analyst Gaurav P. comments in today's The Economic Times' article – 'Silver lining amid funding winter: IT firms acquiring Indian startups, smaller firms': “Armed with plenty of cash, IT services companies have found a fertile hunting ground for startups in India around deep tech, AI, and Space applications to augment capabilities, to address white spaces (gaps in their portfolios) especially in high value work like design, and above all get access to skilled resources that normally takes years to build internally. “Large IT firms have now cracked the code of the startup innovation culture and are able to integrate acquired companies with the services organization, while still maintaining a hands-off approach. It is a win-win proposition for both, with startups getting access to resources, especially in times of a funding crunch, and also to an entire gamut of Fortune 1000 companies that the IT firms serve." You can read the full article at: https://lnkd.in/et3wqUba #ITservices #ITS

NelsonHall Principal Research Analyst Gaurav P. comments in today's The Economic Times' article – 'Silver lining amid funding winter: IT firms acquiring Indian startups, smaller firms': “Armed with plenty of cash, IT services companies have found a fertile hunting ground for startups in India around deep tech, AI, and Space applications to augment capabilities, to address white spaces (gaps in their portfolios) especially in high value work like design, and above all get access to skilled resources that normally takes years to build internally. “Large IT firms have now cracked the code of the startup innovation culture and are able to integrate acquired companies with the services organization, while still maintaining a hands-off approach. It is a win-win proposition for both, with startups getting access to resources, especially in times of a funding crunch, and also to an entire gamut of Fortune 1000 companies that the IT firms serve." You can read the full article at: https://lnkd.in/et3wqUba #ITservices #ITS

NelsonHall Principal Research Analyst Gaurav P. comments in today's The Economic Times' article – 'Silver lining amid funding winter: IT firms acquiring Indian startups, smaller firms': “Armed with plenty of cash, IT services companies have found a fertile hunting ground for startups in India around deep tech, AI, and Space applications to augment capabilities, to address white spaces (gaps in their portfolios) especially in high value work like design, and above all get access to skilled resources that normally takes years to build internally. “Large IT firms have now cracked the code of the startup innovation culture and are able to integrate acquired companies with the services organization, while still maintaining a hands-off approach. It is a win-win proposition for both, with startups getting access to resources, especially in times of a funding crunch, and also to an entire gamut of Fortune 1000 companies that the IT firms serve." You can read the full article at: https://lnkd.in/et3wqUba #ITservices #ITS

NelsonHall Principal Research Analyst Gaurav P. comments in today's The Economic Times' article – 'Silver lining amid funding winter: IT firms acquiring Indian startups, smaller firms': “Armed with plenty of cash, IT services companies have found a fertile hunting ground for startups in India around deep tech, AI, and Space applications to augment capabilities, to address white spaces (gaps in their portfolios) especially in high value work like design, and above all get access to skilled resources that normally takes years to build internally. “Large IT firms have now cracked the code of the startup innovation culture and are able to integrate acquired companies with the services organization, while still maintaining a hands-off approach. It is a win-win proposition for both, with startups getting access to resources, especially in times of a funding crunch, and also to an entire gamut of Fortune 1000 companies that the IT firms serve." You can read the full article at: https://lnkd.in/et3wqUba #ITservices #ITS

NelsonHall Principal Research Analyst Gaurav P. comments in today's The Economic Times' article – 'Silver lining amid funding winter: IT firms acquiring Indian startups, smaller firms': “Armed with plenty of cash, IT services companies have found a fertile hunting ground for startups in India around deep tech, AI, and Space applications to augment capabilities, to address white spaces (gaps in their portfolios) especially in high value work like design, and above all get access to skilled resources that normally takes years to build internally. “Large IT firms have now cracked the code of the startup innovation culture and are able to integrate acquired companies with the services organization, while still maintaining a hands-off approach. It is a win-win proposition for both, with startups getting access to resources, especially in times of a funding crunch, and also to an entire gamut of Fortune 1000 companies that the IT firms serve." You can read the full article at: https://lnkd.in/et3wqUba #ITservices #ITS

NelsonHall Principal Research Analyst Gaurav P. comments in today's The Economic Times' article – 'Silver lining amid funding winter: IT firms acquiring Indian startups, smaller firms': “Armed with plenty of cash, IT services companies have found a fertile hunting ground for startups in India around deep tech, AI, and Space applications to augment capabilities, to address white spaces (gaps in their portfolios) especially in high value work like design, and above all get access to skilled resources that normally takes years to build internally. “Large IT firms have now cracked the code of the startup innovation culture and are able to integrate acquired companies with the services organization, while still maintaining a hands-off approach. It is a win-win proposition for both, with startups getting access to resources, especially in times of a funding crunch, and also to an entire gamut of Fortune 1000 companies that the IT firms serve." You can read the full article at: https://lnkd.in/et3wqUba #ITservices #ITS

Indian Startups: Driving Growth for IT Giants Amid Funding Challenges In a challenging funding climate, Indian startups are stepping up as game-changers for IT giants. These startups, with expertise in AI, semiconductors, data analytics, and space-tech, are now at the center of strategic acquisitions by global tech leaders. Why? Because innovation and agility are the need of the hour. With tech spending under scrutiny worldwide, IT giants are investing in startups to fill critical gaps, future-proof their offerings, and fast-track entry into high-growth segments like design and AI. This trend, known as “Solutions to Valuations,” underscores the immense value these partnerships bring. Startups offer not just cutting-edge solutions but also new revenue avenues for larger firms to capitalize on across their global client base. The synergy is a win-win: startups gain resources and market exposure, while tech companies enhance competitiveness and scale their portfolios efficiently. Amid a funding crunch, these collaborations are rewriting the growth story of the tech industry, ensuring innovation continues to thrive. For the staffing industry, this shift signals a surge in demand for niche skills and specialists who can drive these transformative partnerships. Are we prepared to meet the talent needs of this evolving ecosystem? #StaffingSolutions #IndianStartups #TechInnovation #FutureOfWork #ITGrowth #Partnerships #NainomindzSolutions #Nainomindz

~3,200 private venture-backed U.S. companies went out of business this year, raising over $27 billion collectively, this figure does not include companies that failed after going public or were acquired. Raising funding in 2025 will be challenging, especially for AI startups, unless they prioritize quality over quantity. Investors are looking for loyal customers, strong recurring revenue, and sustainable business models—product flash alone won’t suffice. On top of that, the buying landscape has evolved significantly. With the democratization of tech, rise of digital-native leadership generations, purchasing decisions have become more complex and collaborative. Tech purchasing is no longer just an IT function. In early 2024, many boards allocated substantial budgets to AI, but that trend is fading, and the "productivity promise" is losing its value. Startups must now demonstrate lasting impact and outcomes to attract buyers and investors. Where to start? Continuously understand your customers' changing priorities, markets, industries, maturity, risk tolerance, budgets, internal politics, and more. Meet them where they are; avoid overbaking tech solutions, and prioritize ruthlessly to avoid burning cash. Gartner helps leaders identify blind spots and ride the waves of 2025. https://lnkd.in/g-d8xccc #techceo #innovation #growth

🚀 Big news for #innovation in India! The Commerce and Industry Ministry is set to propose a new #DeepTech #Startup Policy in the upcoming budget. Get ready for groundbreaking changes aimed at boosting India’s tech ecosystem and driving #economic growth. 🌐 #DeepTechStartupPolicyIndia #Innovation