If you read enough business books or blogs, I’m sure you’ve come across the name Steve Blank. He is the man who gave us the customer development methodology which is still used to this day. Another contribution he made, which we will be talking about in this blog, are the different types of startups. This classification can be applied not only to the startups located in everyone’s favorite but overpriced tech haven Silicon Valley but in India as well. Read on to find out more.
Small business startups
These are some of the most common types of startups in India. They are started by people whose primary aim is to make a living. They either do not want to expand or be bought by a larger company and they grow at their own pace without pressure from investors. Most small and medium business startups are owned by an individual or a small group of people like a family-owned business. A startup that fits this bill is Preplaced, an interview prep company for college students and working professionals. They offer services to help you get ahead of your competition in interviews.
Large company startups
Large company startups, like the name suggests, are startups created by another company. The main aim of these startups is to create new products or services for an ever-evolving market. Take a look at Glance, an AI-based software company that is owned by InMobi, a tech company and one of the first unicorn startups in India. Glance delivers personalized content directly to your mobile home screen. Think Tik Tok videos or Instagram reels but on your lock screen instead of having to open an app.
Scalable startups
Scalable startups are the type of startups that most people associate ‘startups’ with. These kinds of companies take a unique idea and scale it into a profitable business using a combination of funding and business plan. Every single tech giant that you see now, from Google to Facebook were once scalable startups. In India, one of the most prominent scalable startups is Flipkart. The e-commerce giant began as an online bookseller before expanding into different consumer items. Nowadays, it is the biggest homegrown e-commerce site in India.
Social startups
Social startups are a type of startups whose primary aim is to make the world a better place to live in. They are focused on a specific goal of helping people or the environment. It is not driven by profit like the rest of the startups mentioned here. An example of this type of startup in India would be the Kisan Network. We all know farmers tend to suffer a huge loss because of the middleman who buys their crops for cheap. Well, this startup aims to help farmers across India by letting them sell their products directly to businesses without the need for a middleman. This in turn helps farmers recoup their losses and makes sure they are no longer exploited.
Lifestyle startups
There’s a saying that goes, “do what you love and you’ll never work a day in your life”. This is true for lifestyle startups. These kinds of startups are driven by passion, usually a hobby, that turns into a profitable business. A company that encapsulates what a lifestyle startup is Zivame. The company has managed to take the founder’s passion for bringing affordable and quality lingerie to India. It also led to the start of many conversations about lingerie, which was once considered a taboo topic by many in India (like those nosy neighborhood aunties).
Buyable startups
The last type of startup in India we are going to discuss is buyable startups. The goal for this type of startup is usually not long-term scalability but to sell it as fast as possible and for a profit. One such startup that comes to mind is Simsim which was bought by tech giant Youtube in 2021. Using influencers to help sell a product is very common these days. And that is exactly what Simsim does. The company helps small businesses flourish in the e-commerce space by using influencers to help gain traction.
You can also check this out Top 6 Revolutionary Start-Ups In India you must know
Conclusion
So this concludes our list of the different types of startups in India. Now that you have a better understanding of the different types, you can get started on turning that startup idea you have into a million-dollar company.
