Operational excellence will determine the next stage of startup growth in India
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YourStory [india, en]
yourstory.com

Operational excellence will determine the next stage of startup growth in India

Growth is rarely announced in advance; it might appear as a signed term sheet on a Friday evening, a major client wanting to start work in three weeks, or an increase in investment. However, achieving success is rarely the hardest part. The real difficulty sets in the Monday after.

This Monday determines whether the company has built something sustainable or merely had a good quarter. In many startups, operational functions remain on the periphery: the team requests permissions, slows down contract finalization, and replies 'not yet' when the sales department says 'yes'. Founders often tolerate this like a passenger tolerates a seatbelt.

However, research by Bain & Company showed that 85% of obstacles to profitable growth are internal, with revenue exceeding headcount at the top of this list. Companies rarely lose to the market; they lose to their own machinery, and operations are that machinery.

In the early stages, operations seem unnecessary. A small team, a founder who knows everything, and a functioning spreadsheet suffice. Why design control systems for a business that fits in one room? But by the time such a need arises, the company is already behind.

Operations implemented in the middle of a growth spurt are created under pressure: employees are hired hastily, processes are patched up, and controls are established only after problems arise. Worse still, this diverts resources from growth itself. The team that should be closing the next deal is busy troubleshooting the previous one. Thus, the pace slows down precisely when acceleration is needed.

You cannot lay railway tracks after the train has left the station. This is not a reason to bloat the staff, but a call for the right sequence. It is necessary to build a foundation one stage ahead of the current situation, making it flexible and proportional so that the organization can absorb growth rather than collapse under its pressure.

Companies that scale most smoothly are rarely in a state of chaos when growth arrives; reporting, control, and personnel for the next stage are already ready. Investors notice this difference. During due diligence, a clean data room and a well-documented control environment often speak more about the company's readiness than its growth curve.

Operations are also where company data is stored, or should be. Every form, approval, and report generates information. Most startups view this as waste. The best view it as measuring instruments. When operations possess clean and consistent data, management stops arguing about whose metric is correct and starts discussing what to do with it. You notice the forming bottleneck before the customer complains. Automation and artificial intelligence, which almost every board of directors asks about now, only work with trustworthy data.

Automating a convoluted process will only accelerate chaos. If your founders and operations team are looking at different numbers, the problem is not the data, but the operations. The same discipline applies to errors. An error made once is a lesson; made twice, it is a choice.

Every mistake in a growing firm must leave behind something: modified controls, a clearer owner, or an improved checklist. The correlative moment is equally important. If the same method consistently yields the same disappointing result, the problem is rarely in the effort; it is in the method. Operations must be a function that notices, asks 'why?', and has the authority to change how the work is done. Processes are not sacred texts; they are hypotheses, and good operators constantly test them.

For founders and boards reviewing organizational structures this year, one test is very telling: does the operations department learn about a new product, market, or client after it has been sold, or during its development? If information arrives after the sale, the operations department will always be firefighting, and firefighters rarely build.

Place operations where growth is planned, not at the end of the line where growth is merely processed. Give them a place in strategic reviews, a voice in pricing and launches, and a mandate to say 'here is how to do it,' not just 'not yet.' Ask yourself: 'What will break first if our business doubles next quarter?', 'Which decisions still require the founder, and should they?', 'Will our records withstand investor scrutiny this week?'

There is an old military adage: amateurs discuss strategy; professionals handle logistics. The history of Indian startups has so far been told in the language of strategy: rounds, valuations, category creation. The next chapter will be about sustaining growth, not just achieving it, and it will be told in the language of execution and management. Instant growth is an event. Sustainable growth is an ability. And ability, ultimately, creates operations.

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WorldQuant claims India has potential for sustainable growth in quantitative investing

According to Nitish Maini, Director of Strategy at WorldQuant, India's deep pool of technical specialists and developed technological infrastructure create favorable conditions for continuous growth in the field of quantitative investing.

In an email exchange with Business Standard, he stated that India possesses the necessary elements for sustainable development in quantitative investing, including an extensive base of technical personnel and a strong technological foundation. He noted the sharp increase in the number of participants from India in the International Quantitative Championship WorldQuant (IQC), which exceeded 54,000 people in the last edition, compared to approximately 15,600 participants in 2024.

Quantitative investing uses mathematical models, statistical methods, and algorithms to identify market patterns and generate investment signals. WorldQuant, founded in 2007, is an international asset management firm specializing in quantitative methods, developing and applying systematic investment strategies across various markets.

The continuation of quantitative methods development

According to Maini, the next stage of quantitative investing development will be determined not so much by access to large volumes of data or automation, but by improved research methodologies. He emphasized that Indian researchers can focus on developing investment concepts that are robust, economically significant, and distinct from existing ones.

In India, although asset managers still primarily rely on fundamental research, quantitative models are increasingly being integrated into investment strategies. There is a specific scheme in the mutual fund category focused on quantitative methods, which collectively manages approximately 10,000 crore rupees. Furthermore, several other actively managed funds also utilize quantitative tools to varying degrees.

Maini added that artificial intelligence (AI) accelerates and simplifies quantitative research, helping specialists analyze information, formulate hypotheses, test different scenarios, and automate parts of the research process. However, he warned that broader access to technology does not guarantee a sustainable investment advantage.

He concluded that 'speed does not equal understanding,' noting that as access to AI tools expands, the importance of the quality of questions asked, the discipline of the research process, and the ability to make decisions when evaluating results will increase.

Talent diplomacy could become the next driver of global economic growth
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Talent diplomacy could become the next driver of global economic growth

Historically, drivers of economic power have always been access to capital, energy, technology, and markets; however, more and more countries are facing a much more complex resource—the ability to generate skilled personnel quickly.

Unlike capital, talent cannot be created instantly; its preparation, training, and workforce development require years. Meanwhile, as global economies need more workers, the number of available people is decreasing.

The situation in the healthcare market is one of the most obvious indicators of this problem. The World Health Organization (WHO) forecasts a shortage of 11.1 million healthcare and care specialists worldwide by 2030. Similar pressure is felt in other sectors, including production logistics, hospitality, construction, and crafts. The workforce in many developed countries is shrinking despite the growing need for essential functions. There is a decline in the number of people willing to perform physically demanding work, creating serious structural gaps that cannot be addressed solely through large-scale migration.

It is important to understand that the skills shortage has ceased to be merely an employment issue; it has become a brake on economic growth. Countries can increase investments in infrastructure, industrial potential, and technological development, but if they lack the people to manage these processes, growth is impossible.

Demographic decline is prompting governments to rethink future development paths. By 2050, more than a third of the European Union's population will be over 65, and countries like Japan and Germany are already experiencing acute shortages of qualified personnel in healthcare and care.

The response from these countries goes beyond simple immigration policy reform. Germany's Skilled Immigration Act, Japan's increased opportunities for foreign workers, and the EU's Talent Partnerships are part of a broader shift: policies are beginning to view 'talent as a strategic asset.'

These agreements are increasingly focused not only on visas but also on workforce training, qualification recognition, and worker mobility. Where countries once competed for access to markets, energy resources, and supply chains, they are now forming partnerships to ensure access to skilled professionals.

This could be one of the most significant changes in economic diplomacy in the coming decade. India's potential should be viewed not as labor export, but as becoming a reliable global workforce readiness hub. At the same time, India's domestic healthcare needs must remain central to this approach, and responsible mobility should contribute to developing additional training bases rather than indefinitely draining resources from already strained areas.

Positive shifts are already visible in policy. India plans to establish 30 International Skill India centers focused on preparing people for overseas work, and the NSDC has certified over 22,455 candidates for international mobility in the last three years. The 'International Mobility Framework 2026,' released by NITI Aayog, also points to a change in mindset, calling for greater state participation in global labor mobility. Collectively, this indicates a broader shift where labor mobility becomes a national asset, helping to create stronger economic partnerships, talent corridors, and making India a reliable partner for the global workforce.

In contrast to taking on the role of educators, artificial intelligence technologies can assist with individualized learning, language training, workplace simulations, and competency assessment. Technology can minimize information discrepancies that traditionally complicated international recruitment. Employers demand guarantees of authenticity in credentials and experience, while applicants need assurance regarding the legitimacy, cost, and working conditions of the offer.

This is becoming an increasingly important competitive advantage. ASEAN is striving for digital recognition of qualifications and credentials to ensure smoother cross-border mobility. For India, the opportunity lies in making workforce readiness portable, verifiable, and trustworthy. Technology can become the infrastructure allowing Indian specialists to prove their preparedness in different markets, lowering barriers for both employers and host countries.

Although India's demographic weight is not the only factor among the growing group of developing countries that have invested years in creating structured talent corridors with host countries, global experience shows that over 8,000 nurses from Germany's Triple Win program, established through intergovernmental recruitment and training systems, as well as Japan's long-standing health corridors with Indonesia, the Philippines, and Vietnam, cover language training, certification, and management.

Thus, the real competition is not for vacancies, but for trust. The labor shortage as a strategic problem of aging economies generates a diplomacy where workforce readiness determines which nations will become indispensable partners in supporting global growth.

TechSparks Experts Emphasize Need for Global Ambitions for Deep Tech Startups in India
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TechSparks Experts Emphasize Need for Global Ambitions for Deep Tech Startups in India

Participants of the panel discussion at the TechSparks summit by YourStory concluded that deep technology startups in India should target global markets despite existing challenges.

The deep tech sector within the Indian startup ecosystem has emerged from the shadows and secured its niche. Although various problems exist, experts agreed that the overall situation in the sector is improving. The panel included founders from robotics, precision manufacturing, and semiconductor fields, as well as a representative from an analytical policy center. Shivani Mutanna, Senior Director of Strategic Content and Video at YourStory, moderated the discussion.

Kaushik Mudda, founder and CEO of Ethereal Machines, a precision manufacturing company, stated that his company possesses most of the necessary conditions for international competition. Shweta Rajpal Kohli, President and CEO of Startup Policy Forum, noted that thanks to significant government contributions in terms of capital and policy, the deep tech ecosystem has found its rightful place. She emphasized: 'I think the government has done many right things in creating a conducive environment. Now is the time for India to advance deep technologies.'

Today, deep technologies aim to create or possess technologies critical to the country's sovereignty. Harish Chandrasekar, co-founder of Agnit Semiconductors, noted that all ecosystems need to develop, but this will only happen over time. Agnit Semiconductors is the first vertically integrated startup in India producing gallium nitride-based semiconductors.

Gokul N A, founder of the robotics startup CynLr, highlighted the challenges faced by deep tech startups in the country, especially in their field, pointing out the lack of a complete ecosystem. He also pointed to the shortage of skilled manpower, particularly at the middle management level, adding that the country produces insufficiently high-quality engineers because its focus remains predominantly service-oriented.

The panelists agreed that the country needs clearly defined directions in the deep technology segment, which is a very broad topic. Mudda stated that it is necessary to begin forming the basic elements for becoming a manufacturing superpower. Chandrasekar stressed the importance of developing sovereign capabilities for the country in the current climate where semiconductors are used as weapons.

Access to capital is also a hurdle, although the situation has significantly improved compared to the past. Gokul noted that while seed funding has improved, more effort is required to attract long-term capital to this segment. Kohli reported that the capital problem is being addressed, particularly through the Government's Research, Development, and Innovation fund of 1 lakh crore.

Mudda suggested that raising funds up to $5 million is not a major issue for deep tech startups, but there is a deficit when attracting larger sums—from $10 to $15 million.

Regarding the role of the state as a customer for deep tech startups in the country, the panelists believe the government can act as an assistant, but startups must look towards global markets. Kohli stated that demand generation and the government's role as the first buyer are a big stimulus for any sector, but she added that the government procurement process is somewhat complex.

Chandrasekar noted that although startups would like the government to be their first client, it cannot be the only one. Gokul emphasized that deep tech requires a global market and cannot focus solely on India. In conclusion, Kohli noted that increasing the self-confidence of ecosystem participants is necessary to ensure the growth of deep technologies, stating: 'India has the talent, the scale, and everything needed. We just need to accelerate this at a feverish pace now.'

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