India’s startup ecosystem, the third-largest globally, is breaking geographical barriers, with over 100 unicorns and $10 billion in funding in 2024. A 2025 Meta-commissioned study by Alvarez & Marsal India reveals that 52% of Indian startups are pursuing cross-border expansion, targeting regions like the US, UAE, UK, Southeast Asia, and Africa. Fueled by India’s digital infrastructure, cost-effective innovation, and a maturing entrepreneurial mindset, this global push is redefining India’s role in the world economy. This article explores the drivers, key players, challenges, and impact of this cross-border expansion wave, supported by data-driven insights and visualizations.
Table of Contents
Drivers of Global Expansion
Several factors propel Indian startups to go global:
- Large Addressable Markets: International markets offer bigger total addressable markets (TAM), especially in saturated domestic sectors like fintech and e-commerce. The US, with its high-ticket-size market, and Southeast Asia, with its digital growth, are prime targets.
- Access to Capital and Talent: Global hubs like Singapore, Dubai, and San Francisco provide easier access to venture capital and specialized talent, particularly in AI and deep tech.
- Digital Infrastructure: India’s 850 million internet users and UPI’s global influence enable startups to scale seamlessly.
- Government Support: Initiatives like Startup India’s International Bridges and relaxed reverse-flip IPO norms encourage global ventures while facilitating re-domiciling to India.
- Global Demand for Indian Innovation: Indian SaaS, healthtech, and edtech solutions are gaining traction for their affordability and scalability.
Key Startups Leading the Charge
1. Zoho: SaaS Powerhouse
Zoho serves 100 million users across 150+ countries, with 50% of its revenue from international markets. In 2025, it expanded data centers in the UAE and Europe for GDPR compliance.
2. Freshworks: Customer Engagement Innovator
Freshworks, listed on NASDAQ, serves 67,000+ customers, with 60% of revenue from the US and Europe. Its 2024 UK acquisition enhanced its AI offerings.
3. Razorpay: Fintech Trailblazer
Valued at $7.5 billion, Razorpay’s international transactions grew 40% YoY. Its 2025 acquisition of POP for $30 million boosted cross-border capabilities.
4. MPL: Gaming Platform Vision
MPL’s parent, M-League, reported INR 1,099 crore in 2025, with expansion into Southeast Asia and the US leveraging India’s gaming talent.
5. Tonbo Imaging: Defense Tech Exporter
Tonbo Imaging serves NATO and US Navy SEALs, raising $20.4 million in 2025 at a $175 million valuation.
6. Pepper Content: Creator Economy Export
Pepper Content derives over a third of its revenue from the US, expanding into the UK in 2025.
Data Insights: Funding and Market Reach
The table below highlights the funding and global reach of these startups, showcasing their scale and impact.
| Startup | Sector | Funding Raised (Recent) | Global Reach (Countries) | Key Markets | Revenue Share (International) |
|---|---|---|---|---|---|
| Zoho | SaaS | Undisclosed (Profitable) | 150+ | US, Europe, UAE | 50% |
| Freshworks | SaaS | $400M (Pre-IPO) | 100+ | US, Europe | 60% |
| Razorpay | Fintech | $366.6M (Series F) | 10+ | Southeast Asia, Middle East | 20% |
| MPL | Gaming | $150M (Series E) | 5+ | US, Southeast Asia | 15% |
| Tonbo Imaging | Deep Tech | $20.4M (2025) | 10+ | US, Europe, Israel | 80% |
| Pepper Content | Creator Economy | $14.3M (Series A) | 5+ | US, UK | 33% |
Insights:
- SaaS Dominance: Zoho and Freshworks lead with high international revenue shares (50-60%), reflecting the global appeal of SaaS for its scalability and low marginal costs.
- Fintech and Edtech Growth: Razorpay and Byju’s show strong funding and growing international traction, driven by digital payment and education demand.
- Deep Tech Niche: Tonbo Imaging’s 80% international revenue highlights India’s potential in specialized sectors like defense tech.
- Funding Trends: Total funding for these startups exceeds $2 billion, with SaaS and edtech attracting the largest investments due to their global scalability.
Visualization: Funding Trends (2019-2024)
The bar chart below illustrates the funding trends for Indian startups with global operations from 2019 to 2024, highlighting the sector-wise distribution.
Insights from Chart:- Peak in 2022: Funding peaked in 2022 across sectors due to post-COVID digital adoption, with SaaS leading at $1.5 billion.
- 2023 Dip: A 40% funding drop in 2023 reflects global economic slowdown, but 2024 shows recovery, particularly in fintech ($1.1 billion).
- SaaS Leadership: SaaS consistently attracts the highest funding, underscoring its global scalability and investor confidence.
Challenges in Going Global
- Regulatory Complexity: Compliance with GDPR, CCPA, and local data laws requires significant investment. The Schrems II ruling complicates EU data transfers.
- Funding Constraints: Late-stage funding remains scarce, with only 22 deals contributing $880.6 million in 2024.
- Cultural Adaptation: Localizing products for markets like Southeast Asia, which prefers mobile-first solutions, is critical.
- Supply Chain Issues: Tariffs and currency fluctuations disrupt cross-border operations. Startups like Ximcart diversify suppliers to mitigate this.
- Talent Acquisition: Hiring global executives with geopolitical expertise is costly but essential.
Opportunities and Strategic Responses
- Strategic HQs: MPL’s Singapore base and Razorpay’s reverse-flip to India align with tax and IPO benefits.
- Partnerships: Collaborations with global VCs, like BAT VC’s $100 million for US-India tech, boost credibility.
- Government Support: Startup India’s partnerships with 25+ nations and events like VivaTech 2023 open global doors.
- China+1 Tailwinds: India’s PLI schemes position startups like Zetwerk to capture global supply chain shifts.
Visualization: Regional Expansion Focus
The pie chart below shows the regional focus of Indian startups’ cross-border expansion in 2025.
Insights from Chart:
- US Dominance: The US is the top destination (35%) due to its large TAM and investor base.
- Emerging Markets: Southeast Asia (20%) and the Middle East (15%) are growing targets due to digital adoption and proximity.
- Africa’s Potential: At 5%, Africa is an emerging market for edtech and fintech startups.
The Road Ahead
By 2030, India’s startup ecosystem could produce 500+ global players, with SaaS, fintech, and deep tech leading. Strategic partnerships, compliance readiness, and localized strategies will drive success. The achievements of Zoho, Razorpay, and Tonbo Imaging highlight India’s potential to lead global innovation, ensuring a lasting impact on the world stage.
also read: Ixigo’s Stellar Q1 FY26 Performance: Revenue Soars 72.5% to Rs 314 Crore, Profits Surge 27%
Last Updated on: Thursday, July 24, 2025 2:54 pm by Swayam Sharma | Published by: Swayam Sharma on Thursday, July 24, 2025 2:54 pm | News Categories: India News, Startup News, Trending News
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