5 things to consider when expanding in India


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I have recently expanded my business to INDIA. This decision was based on several reasons. Undeniably, the size of the Indian market, with over a billion potential customers, was very attractive. The established call center and outsourcing industry in India also presented a great opportunity for our time tracking software.

Another big factor was the surge in Indian users during the pandemic-induced shift to remote work that highlighted the need for tools to track remote employee hours. India became our main source of new subscriptions, accounting for nearly half of our customer base. This increase in users naturally prompted us to explore further opportunities in the Indian market.

Finally, a change in Indian legislation in 2021 forced our hand. Automatic payments became unsafe for non-Indian registered companies, especially for subscription-based models like ours. This created a customer service nightmare with constant support tickets. To get automatic payments working again and improve our operations, we needed an Indian bank account, which required an Indian registered company.

Here's what we've learned so far about doing business in India.

1. Be prepared for bureaucracy

Despite India's efforts to modernize, there is a surprising amount bureaucracy. The company registration process involves many documents and long processes, especially for opening a bank account. This is partly due to a crackdown on fraudulent companies registered during COVID.

Another big challenge is the way the Indian authorities handle the documents. Endorsements often involve sending physical copies back and forth, including some that require physical stamps, which are rarely used elsewhere. The Indian government also requires very detailed documentation to prove ownership and residency.

Connected: 6 Obstacles to expanding your company internationally

2. Find reliable local partners

Since Indian law requires at least one company director to be an Indian citizen, you will need reliable partners there. Additionally, navigating the entire process requires a local representative to handle meetings and paperwork in person.

It soon became clear that we needed to partner with a specialist company to help international companies enter India. After researching and comparing prices (which vary widely), we eventually found reliable partners that fit our business well.

Working with such local representatives is a good deal if you don't need a significant physical presence in India to begin with. You can use their office as your registered address and pay them a monthly fee for their services.

Once you have found your Indian partners, consider the cultural differences. Be prepared for more frequent follow-ups due to cultural differences and accept possible delays during holidays.

Connected: 3 steps to create powerful business partnerships

3. Use the power of word of mouth

Indian customers are known for spreading the word about useful solutions. From our experience, if your product appeals to the Indian market, you can get good traction through word of mouth.

Our clients also played a major role in increasing brand awareness in India. Once we had a good Indian user base, we started looking for case studies and success stories for our marketing materials.

Now, we are taking localization a step further by revamping our registration process with design and messaging that resonates with the Indian market. We believe this will make us appear more credible and relevant locally.

If it applies to your type of business, running a reseller program in India is another strategy that uses the power of word of mouth to generate a good stream of income.

4. Gather insights from your resellers

India reseller programs have been instrumental in acquiring large customers and driving our growth. We've actively sought their feedback, which has given us invaluable insight into what works and what doesn't in Indian market.

Here's what we learned about working with vendors in India:

  • Build relationships: The Indian market values ​​strong relationships. The resellers there want to be sure of the product before selling it.
  • Prove your worth: Indians are cautious in adopting new things. You have to demonstrate the value of your product before they will be interested.
  • Avoid collisions with sellers: If you decide to sell directly in India, be careful about pricing, negotiation and territory to avoid competing with your resellers.

Resellers are also helping us determine the best way to advertise in India. Price reigns supreme for Indian customers, so they often prioritize the cheapest option over features.

Connected: How to build a reseller platform in India

5. Choose the right city

Because India is so large, choosing the right city to operate in can be just as crucial as choosing the right European country. The location of your business is especially important when starting and going through the registration process. Once you're set up, it doesn't matter where you're working from.

Our choice was between Delhi as the capital and Bangalore as a kind of Silicon Valley of India. We went with the Delhi branch because we found partners there and it was cheaper to start operations there.

Whichever option you choose, check with your local partners and seriously consider geography—eg, which countries have the best flight connections to your headquarters and other branches.

Setting up a company in India can be difficult unless you do your research and preparation well and find a reliable local representative to help you navigate the bureaucracy. For DeskTime, this extension is an experiment with the potential for significant benefits.



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