AI Unveils Indian Businesses' Top Priorities: Profit, Payments, Sales

So, picture this: you’re at a bustling café in Mumbai, sipping on your masala chai, and overhearing a group of entrepreneurs discussing their business woes. They’re all talking about the same thing—how to make their businesses more profitable, get paid faster, and boost sales. Sounds familiar, right? Well, it turns out this isn’t just a casual chat; it’s a reflection of what’s happening across India’s business landscape.

A recent deep dive into over 30,000 questions directed at Freya, an AI-powered accounting assistant from Refrens, reveals that Indian businesses are laser-focused on profitability, efficient payment cycles, and sales growth. It’s like they’ve all decided to put on their financial glasses and get serious about their bottom line.

Profitability: The Big Kahuna

Let’s talk about profitability first. According to the survey, a whopping 27% of the questions were all about understanding and improving margins. Imagine a small business owner, let’s call her Priya, who runs a boutique in Delhi. She’s been feeling the pressure to keep her margins healthy. She starts asking Freya questions like, “What’s my net margin trend over the last few months?” or “Which products are actually making me money?”

Priya’s not alone. Many business owners are diving deep into their financials, trying to figure out where they can cut costs and where they can push for more revenue. It’s like they’re on a treasure hunt, searching for the golden nuggets that will help them thrive. Naman Sarawagi, co-founder of Refrens, points out that traditionally, business owners relied on accountants or junior staff for this info, which could take days. Imagine waiting two or three days for crucial insights—yikes! But with AI like Freya, they can get real-time insights, making decisions faster and with less stress.

Payments: The Cash Flow Conundrum

Now, let’s shift gears to payments. This area accounted for about 23% of the queries. Think about it: delayed payments can be a nightmare for any business. Picture Raj, who runs a small manufacturing unit. He’s been struggling with clients who take forever to pay. He starts using Freya to identify those clients who are always late and to analyze how long it usually takes to get paid.

This isn’t just Raj’s problem; it’s a widespread issue in India. Many businesses are facing cash flow disruptions because of slow B2B payment behaviors. It’s like trying to run a marathon with a boulder on your back. And let’s not forget about the credit gap that many micro, small, and medium enterprises (MSMEs) face, which is estimated to be in the hundreds of billions of dollars. Keeping cash flow healthy is like keeping the lifeblood of a business flowing.

Sales and Growth: The Final Piece of the Puzzle

Finally, we’ve got sales and growth strategies, which made up about 17.5% of the questions. This is where things get really interesting. Businesses are keen to understand their customers better. Imagine a restaurant owner, Meera, who wants to know why some customers keep coming back while others don’t. She starts asking Freya about repeat purchase rates and sales trends.

It’s not just about selling more; it’s about selling smarter. Companies are also looking into how their pricing strategies impact revenue. It’s like a chess game, where every move counts. And with inventory management being a hot topic, businesses are trying to balance stock levels with demand.

But here’s the thing: while there’s a push for digital transformation, many SMEs are struggling to keep up. They might not have the skills or resources to fully embrace technology. However, even basic AI tools, like chatbots for customer inquiries, are showing real value in improving lead conversion and productivity without breaking the bank.

The Road Ahead for AI in India

So, what does all this mean for the AI industry in India? Well, it’s clear that there’s a huge demand for tools that can provide immediate, actionable insights into financial health. Businesses are waking up to the fact that traditional reporting cycles just don’t cut it anymore. AI-powered assistants are becoming the new norm, offering CFO-level analytics to everyone.

But let’s not kid ourselves; there are still barriers to overcome. Cost, complexity, and a lack of in-house expertise are big hurdles, especially for MSMEs. For AI to really make a difference, it needs to be powerful yet user-friendly and affordable. Solutions should cater to the specific needs of Indian businesses, including support for regional languages and compliance with local regulations.

In the end, the successful integration of AI will hinge on bridging the digital skills gap and proving that AI can deliver a clear return on investment. It’s all about turning potential into performance, and that’s what’s gonna keep the backbone of the Indian economy strong.

So next time you’re at that café, listen closely. You might just hear the future of Indian business unfolding, one question at a time.