The Indian startup ecosystem has witnessed exceptional growth over the last decade, evolving into a dynamic landscape for technology and innovation. In recent years, the number of unicorns has multiplied, positioning India as a global tech hub – with Bengaluru ranking among the top 10 leading tech hubs, having raised $5.5 billion in 2023.
Indian tech startups are also exploring international markets, with the UK emerging as a key destination. Grant Thornton data shows that 971 Indian companies are expected to operate in the UK in 2024, compared to 954 in 2023, generating cumulative revenue of £68.09 billion, a significant increase from the £50.5 billion reported in 2023.
As Indian companies expand and explore global opportunities, they can capitalise on several key trends – from leveraging global interest in emerging technologies, to embedding themselves in developed tech hubs, and accessing the best talent available.
Emerging Technologies
Technologies like Artificial Intelligence (AI) have the capacity to solve pressing global challenges. Innovative AI-powered solutions are being developed across sectors such as healthcare, finance, and logistics, driven by the demand for efficiency and personalised experiences. Indian startups are at the forefront of this revolution, with over 1,659 AI-focused companies leading the charge.
In London, AI development is booming as the city aspires to become the European capital for AI. Ranked #3 globally for venture capital investment in AI technology, behind only Silicon Valley and New York, London is well-positioned to welcome international companies. Microsoft recently announced a £2.5 billion expansion with a new AI office in the city, alongside the launch of new AI hubs by OpenAI and Salesforce.
Demand for Talent and Technology
As AI advances in tech hubs worldwide, access to skilled tech expertise will be crucial in determining where companies establish themselves. London, with its deep talent pool and robust R&D ecosystem, plays a pivotal role in the advancement of AI. The city is home to some of the world’s top universities – 27 in total – offering courses focused on AI, machine learning, and related disciplines, making it highly attractive to growing international companies.
Closer to home, global firms continue to look to India for software development and IT outsourcing, with Indian companies playing a significant role in digital transformation. International demand for tech solutions and support will only increase as new innovations emerge, and many firms will look to India and the UK to fill this need. As Indian companies expand into markets like London, they will benefit from the local talent pool while contributing their own expertise.
Opportunities in International Expansion
Expanding internationally offers Indian startups exciting opportunities for growth and innovation. While challenges such as navigating cultural differences and regulatory frameworks exist, these experiences often yield valuable insights. Companies gain a deeper understanding of local consumer behaviour, adapt to new business practices, and develop the expertise needed to manage complex legal landscapes. These initial hurdles often serve as stepping stones to long-term success in foreign markets. Partnering with local companies, hiring local talent, and leveraging market entry services can help alleviate the challenges of overseas expansion.
Government Initiatives and Policies
As the Indian and UK governments continue to work on bilateral agreements to facilitate market access and create opportunities for businesses, London offers numerous programs that support international companies expanding into the UK capital. London & Partners Foreign Direct Investment (FDI) initiatives are a prime example. We help Indian companies establish and grow their European presence through expert teams based both in-market and on location in London. From opening bank accounts to accessing the right talent and office space, and connecting companies with investors and key contacts, our services are complimentary and tailored to support each company’s growth.
Written by Hemin Bharucha, Regional Director – India & Middle East, London & Partners
