As we begin a new year today, expectations are heady and there’s definitely a tinge of a hangover after the $41.4 Bn funding boom in 2021. Startups set a new benchmark for how they can contribute to the bigger picture and also passed new milestones in 2021, which we have recapped all through December.
Of course, we cannot forget Covid-19 and the third wave now looming in many states in India. There’s some caution being thrown in the mix along with all the optimism because of the Omicron variant, even though it’s less dangerous than previously thought. Having faced the worst of two devastating waves in 2020 and 2021, startups are now ready to tackle whatever comes next as long as the status of vaccines doesn’t change.
Do not forget that now’s also a great time to look ahead. So, what are the broad strokes that will paint the picture of tech in 2022? Here’s how we believe things will come out in the year:
1. Tech IPOs Expected to Boom
Following 2021, at least a dozen tech startups will go for public listings later this year. These IPO contenders will have learned plenty of lessons from the market and the experiences of Paytm, Zomato, Nykaa, and other companies. The primary takeaway is the need to simplify the business model for Indian investors and keep a central focus.
The Indian stock market investor is still some ways from risking their money and believing in the long-term potential of startups. While 2022 will see more startups going public, they will take a far less aggressive approach. Investors believe there will be a shakeup in 2022 and 2023, when we will see mass consolidation in enterprise tech and e-commerce sectors, after the heights of 2021. As India closes in on 150 unicorns in 2022 and 200 unicorns by 2025, the biggest startups will drive major acquisitions. Indian startups are expected to create a value of over $1 Tn by 2025.
2. Remote Work will Continue to Control for Startups
In light of the current pandemic, remote work has become the norm for many companies. However, remote work has always been the norm for startups strapped for cash. Office space is expensive, and many founders choose to implement tools that allow their employees to work from home 100% of the time. This saves the company money, allows employees to live where they want, and generally makes everyone happier.
In 2022, remote work will be the norm for nearly every startup, but that doesn’t mean it’s easy. You need to hit the ground running with a small team, which makes constant communication essential. Be sure to equip your new business with easy, reliable ways to stay connected.
3. Healthy Consolidation, Fintech, and D2C
Fintech firms attracted the most funding in India in 2021, raising more than $9 billion. A significant amount of money will now be used for mergers and acquisitions. This will be very similar to edtech, which saw a huge boom in 2020. But consolidation won’t be limited to fintech. Direct-to-consumer brands, which have proliferated, will also see activity. Several companies will adopt models, which will look to acquire and deploy capital. Fresh capital infusion this year is therefore going to be limited.
4. Crypto & NFTs
In 2021, cryptocurrency and non-fungible tokens dominated the news, and analysts predict that trend will continue in 2022. One thing to keep an eye on as the market becomes more mainstream is how governments and lenders begin to regulate it. An increasing number of global startups have been looking for alternative forms of currency. In that vein, many companies look at cryptocurrency as a possibility. There’s a lot of promise in this technology, with the advent of the NFT and the growth of the metaverse.
For a short time, cryptocurrency was tainted by the volatility of Bitcoin. However, financial entities have increasingly developed regulations surrounding this type of financial system. Adoption continues and an international infrastructure has taken shape.
5. Dawn Of 5G & Metaverse
Even as most of India is yet to experience 4G networks, telcos are all set to launch 5G networks in 2022. And at the same time, there’s talk about metaverse and virtual reality applications. All this seems a little too ambitious in the Indian context, but work has begun. In 2022, we fully expect metaverse to be the buzzword that many companies try to add to their vocabulary. The rebranding of Facebook to Meta is a major signal of the tech industry moving towards the metaverse with many other companies also announcing plans for it.
While there are no standards yet to create a truly interoperable metaverse, startups that enable these links will be in focus for investors and startups in 2022. A key pillar of the metaverse is 5G. Beyond consumer tech applications, 5G will transform how India looks at new-age sectors such as connected auto, digital healthcare, industrial IoT, and more.
6. Automation will take off in a big way
The popularity of tools like Zapier and IFTTT along with the potential for machine learning has led to an explosion of automation possibilities. We’re already seeing artificial intelligence running grocery stores, chatbots taking customer service calls for e-commerce and others, and drones delivering packages. In 2022, expect to see even more automation in the workforce, freeing employees up for higher-level tasks. The team needs to communicate from one integrated platform that leverages AI for features like advanced call routing and natural language chatbots.
7. The Continued Role of Venture Investment
When trying to predict what will happen going forwards, we can draw on current societal trends, known technology challenges, or examples of existing inefficiencies or bottlenecks – anything that suggests a clear opportunity to innovate through the smart deployment of technology.
What’s harder to predict, however, is the extent to which fear or misunderstanding will hinder the progress of innovation and improvement. Resistance to change, whether it’s driven by ignorance or by a political agenda, can lead to slow adoption cycles or a ‘do nothing’ mentality. Transformational growth and scalability – remain uniquely placed to tackle the major societal issues facing us today. In short, we need the dynamism of venture capital more than ever in 2022.
8. Integrations and APIs will be more important than ever
To stay ahead in a rapidly changing market, you need a way to make your product work with others and connect with customers across platforms. Existing integrations and other digital transformation trends can help you expand your reach while APIs allow for customized functionality that will make using your product even easier. API allows developers to add instant messaging, voice, and video to any application or device. You can also integrate other popular tools like:
• Dropbox
• Gmail
• Box
• Slack
• Google Drive
9. Innovation will move at Great Speed
In 2022, companies can fully expect to encounter a whole new set of challenges because consumers have access to exponentially more information and better tools than ever before. To keep up with this quickly changing world, your company needs an innovative way of thinking that is supported by deep data insights. As long as entrepreneurs keep dreaming up new ways to use technology, there will always be room for innovation.
Your company can connect with customers better than ever before by adding the features they expect like messaging, voice and video calls, virtual numbers, toll-free dialing, recording meetings, online faxing, and more. An All-in-one communications platform is an innovation in the communications space that fosters innovation in the companies that leverage it.
10. Therapy and Psychedelics Support
With the world currently facing an extreme shortage of health clinicians, many of whom themselves are struggling with burnout, digital platforms will continue to take center stage, going beyond the current apps linking patients and therapists to deliver more self-service solutions.
Just as video consultation and telemedicine have become key features in the healthcare supply mix, the maturity of – and growing advocacy for – psychedelics will offer patients additional treatment options in 2022. Technology will play a substantial role in the deployment and delivery of psychedelic-focused therapy. While existing technologies are still very nascent, as venture investment increases, they will widen access to treatment for millions of people who are currently being neglected.
