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I've studied the Indus Valley Report published by Blume Ventures this year. Here are some key points I’ve noticed: 1. India’s Consumption Story is Uneven The top 10% contribute 66% of India’s economy, while the middle class struggles to grow. The lower-income segment still has limited purchasing power. 2. UPI is King, But Monetization Remains a Challenge India recorded ₹24.5 trillion in UPI transactions, but due to zero MDR (Merchant Discount Rate), providers struggle to generate revenue. 3. India’s Manufacturing Dream is Still Distant Despite the hype, manufacturing remains stuck at 13% of GDP (vs. China’s 26%). Regulatory hurdles, slow logistics, and a skill gap are major bottlenecks. 4. More Degrees, Fewer Jobs Unemployment among graduates stands at 28.7%, compared to just 3.2% for non-graduates, highlighting a mismatch between education and employability. 5. Startups Can’t Burn Cash Anymore VCs have turned cautious—unlike before, they now demand profitability before scaling. As a result, startups are opting for SME IPOs and venture debt instead of traditional VC funding. 6. Quick Commerce is Booming, But Sustainability is Uncertain 10-minute deliveries grew 24x since 2022, but outside Tier-1 cities, unit economics are weak. If discounts vanish, demand may collapse. 7. India Wants Its Own AI, But Talent is Scarce ₹20,000 crore has been invested in AI, but India lacks enough high-end researchers. We’re still catching up with global leaders. 8. Indians Are Spending More, Saving Less Household savings have hit a 20-year low (5.1% of GDP), while personal loans are at an all-time high. Short-term consumption is up, but long-term financial security is at risk. 9. Startup IPOs Are the New Exit Strategy With VC funding drying up, startups are going public earlier. In 2024, 13 startup IPOs raised ₹29,000 crore, but many aren’t ready for public market scrutiny. 10. The Indian Diaspora is a Goldmine for Brands NRIs sent $107 billion in remittances in 2024 and spend heavily on Indian fintech, ethnic fashion, and luxury goods—a massive opportunity for startups. 11. Startups Are Moving Back to India Previously, firms registered in Singapore or the US for better funding access. Now, regulatory changes and India’s booming stock market are bringing them back. 12. The Next Billion Users Are Online—But Poor India2 & India3 are coming online, but their spending power remains weak. Winning businesses will crack affordability without sacrificing margins. This is my take on the report. What are your thoughts? (P.S. I know I’m posting late, but it’s worth it.)