Mantra for a Successful Collaboration Between Large Companies and Startups

It is now established that the startup ecosystem is booming in the country with over 107 unicorns with a total valuation of over 340 billion dollars. 22 unicorns in India have been recognized in 2022 alone with 94 billion dollar funding in total. There are a number of large companies, who also want to be a part of this booming environment and are willing to extend all the support that startups need. Nevertheless, these collaborations are easier said than done. There are various elements that both parties involved should be heedful of, to ensure that these partnerships are beneficial and flourish in the long term. 

With reference to the same, Arun Tikoo, Senior Vice President -Business and Strategy, Cashfree Payments and Vikas Bhonsle, CEO, Crayon Software Experts had an engaging discussion that brought out several pertinent points on the factors that hinder or fuel successful collaborations between large companies and startups. While Arun Tikoo highlighted how startups can benefit large companies through new age technologies, and agility, Vikas Bhonsle spoke about how large companies can ensure successful collaborations through their market experience.

While some of the insights that Arun Tikoo spoke about are the role played by large companies in the scale up phase of startups, how collaborations between large and small startups add value to the ecosystem, obstacles that come in the way of a successful collaboration with startups and large companies, and what tends to derail successful partnerships, Vikas Bhonsle enlightens viewers about why collaborations with startups must figure in the growth strategy of companies, how large companies can ensure that all the parties involved are mutually benefited, and why this is the right time for these collaborations.

Some of the main points that came across through the discussion are as follows:

• Partnerships between incumbent players and start-ups are the way forward for the future growth and to be sustainable in the long term.
• Startups use technology to add value to existing players without necessarily disrupting them.
• Collaboration between technology start-ups and large corporates is the key for fostering innovation.
• Startups are more agile and focused on specific solutions addressing specific challenges.