Startups Behind Big Brands: How Entrepreneurs Are Helping The Giants?

When you open a banking app, order groceries online, or apply for a health insurance policy, you may assume you’re dealing directly with a well-known corporate giant. But behind the slick user interfaces and polished marketing campaigns, the real innovation is often coming from startups — lean, tech-savvy, and fast-moving.

In recent years, the Indian business ecosystem has witnessed a subtle but powerful shift. Large corporations, once wary of nimble upstarts, are now actively collaborating with, investing in, or acquiring startups. From fintech to FMCG, logistics to healthcare — startups are quietly powering many of the services and products we associate with big brand names.

This symbiotic relationship is redefining India Inc., and in doing so, it is challenging traditional perceptions about where innovation really comes from.

Corporates Turning to Startups for Innovation

Corporates across sectors are recognising a simple truth: building innovation in-house is often slower and costlier than partnering with a startup that already has a ready-to-deploy solution.

Earlier, big companies saw startups as disruptors. Now, they see them as partners in growth. It’s not about competition anymore, it’s about co-creation.

Take HDFC Bank, for instance. The banking behemoth was exploring an acquisition of ZestMoney, a buy-now-pay-later (BNPL) fintech platform that had made waves with its alternative credit underwriting model. While the deal ultimately didn’t go through, the very fact that India’s largest private bank was considering such a move signals a broader trend: traditional institutions are acknowledging that fintech startups are better equipped to build for the digitally native, credit-hungry Indian youth.

Similarly, ICICI Bank and Axis Bank have both entered partnerships with fintech startups like Razorpay, Cashfree, and Open, allowing them to offer API-driven banking solutions, streamline merchant payments, and stay competitive in the digital economy.

Retail Giants, Startup Partners

It’s not just banking. In the consumer retail space, the backend of what appears to be a single, unified brand experience is often a web of startup collaborations.

Reliance Retail, India’s largest retailer, has taken an aggressive approach by investing in and acquiring multiple startups. From Fynd, a fashion e-commerce platform, to Zivame in intimate wear and Milkbasket in hyperlocal delivery, Reliance has been weaving a startup-led innovation framework to strengthen its omnichannel strategy.

In a similar vein, Tata Digital’s acquisition of 1mg and BigBasket was not just about expanding verticals but also about absorbing the tech and agility that these startups brought with them. These deals helped Tata leapfrog into segments where it had minimal prior digital presence, effectively catching up with the likes of Amazon and Flipkart.

Marico, the FMCG giant behind Parachute and Saffola, has also dipped its toes into D2C waters by investing in Just Herbs, an ayurvedic beauty brand, and Beardo, a male grooming startup. These investments helped Marico tap into niche, millennial-driven markets that wouldn’t typically buy legacy brands.

Startups Fueling Logistics, Too

E-commerce growth in India would not have been possible without parallel growth in logistics — a sector where startups like Delhivery, Shadowfax, Loadshare, and Shiprocket are doing the heavy lifting, often on behalf of larger players.

For instance, Flipkart, while maintaining its own delivery arm Ekart, outsources significant volumes to third-party startups for hyperlocal deliveries and peak-season overflow. Shadowfax, which began as a hyperlocal delivery startup, now handles large volumes for both Flipkart and Amazon in tier-II and tier-III towns.

Healthcare & Insurance: Startups Bringing the Tech

Healthcare and insurance are undergoing major tech-driven overhauls — and here too, startups are leading the charge.

Apollo Hospitals has partnered with digital health startups like HealthPlix, mfine, and Dozee, integrating AI and IoT for remote diagnostics, digital health records, and patient monitoring. In these partnerships, startups bring technological muscle, while Apollo provides institutional scale and trust.

Similarly, Max Life Insurance and ICICI Lombard have onboarded insurtech startups such as Turtlemint and Policybazaar for lead generation, policy issuance, and customer education — essential tools in a market where insurance penetration is still low.

Why Big Companies Need Startups

There are several reasons behind this shift:

• Speed and Agility: Startups move fast. In a world where consumer preferences shift rapidly, speed is often more valuable than size.

• Digital-First Mindset: Startups are inherently digital, mobile-first, and UX-driven — areas where many legacy companies still struggle.

• Lower Risk: Instead of investing millions in R&D, companies can partner with a startup that already has market-tested products.

• Fresh Talent and Ideas: Startups attract younger talent, experiment faster, and are not bogged down by legacy bureaucracy.

According to a 2023 report by NASSCOM, over 70% of large Indian companies are now actively engaging with startups, either through incubators, accelerator programs, co-innovation labs, or direct investment.

Startups Gain, But at a Cost

Startups, too, benefit from these collaborations. A partnership with a marquee corporate brings them validation, steady revenue, and a platform to scale.

But it comes at a price — often, the startup’s brand identity fades into the background. The end user interacts with the larger brand, not the startup that built the tech. This white-labelling of innovation means startups remain hidden, even when they’re doing the heavy lifting.

This invisibility also raises challenges in valuation and fundraising. Investors prefer startups with strong consumer-facing brands. Startups that work quietly in the background may struggle to build brand equity, even if their tech is robust and widely used.

The next phase of corporate-startup collaboration in India is likely to evolve from vendor relationships to deeper, co-creation models. Already, several corporates are setting up dedicated venture arms and open innovation programs.

• Mahindra Group runs the Spark the Rise program, which actively scouts for innovative startups in mobility and agritech.

• HUL launched a D2C-focused initiative called HUL Edge, helping startups gain access to retail networks.

• Infosys, Wipro, and TCS have all started global startup collaboration platforms.

As India aims to become a $5 trillion economy, the collaboration between corporates and startups will play a pivotal role. Startups will continue to be the nimble idea factories, while corporates will be the distribution machines.

So, the next time you marvel at a tech-enabled service from a big brand, ask yourself: is this really innovation from the inside? Or is it the brainchild of a startup operating silently behind the scenes?

In the rapidly evolving Indian business landscape, the truth is clear — the face may be corporate, but the engine is increasingly entrepreneurial.