02 May Embracing Limitations: Using Constraints to Fuel Your Startup’s Growth

Banner image generated using ChatGPT, OpenAI, May 2^nd 2025

Startup founders often wish for abundant resources—deep funding, a large team, and a product that sells itself. But the reality is almost always the opposite: shoestring budgets, tiny teams, and products that are still finding their way. While these constraints may seem like obstacles, the best entrepreneurs focus on and know how to transform those constraints into advantages.

The Power of Constraints: Why Less Can Be More

Constraints force startups to get creative. With limited money and manpower, founders can’t simply throw resources at problems. Instead, they must:

• Adapt products rapidly in response to real customer feedback
• Focus on the essentials and cut out distractions
• Build closer relationships with early users, leading to deeper insights and authentic innovation

As David Schonthal, clinical professor of entrepreneurship at Kellogg School, puts it: “The interesting thing about constraints is how they can be used positively.”[1]

Questioning Assumptions: Focusing on Learning, Not Just Validating

A common pitfall for startups is building solutions based on assumptions rather than real user behavior. In India, this risk is amplified by diverse consumer habits and regional differences. Entrepreneurs must resist the urge to seek only validation and instead immerse themselves in the field—observing, listening, and iterating based on authentic feedback.

For instance, a healthtech startup in rural India might assume that a digital solution will be readily adopted, only to find that local healthcare workers prefer traditional methods. The lesson: in the early days, go out to learn, not to validate. Watch how users interact with your product in their real environments, and be prepared to pivot based on what you see, not just what you hear.

Turning Constraints into Strategic Advantages

1. Frugal Innovation as a Mindset

The Indian ethos of jugaad is about doing more with less. Startups routinely bootstrap, leveraging family and community networks for early support, and finding creative ways to solve problems with minimal resources. This approach not only conserves cash but also fosters solutions that are inherently scalable and resilient in resource-constrained markets.

It is quite a challenge to access computers for rural schools and low-cost private schools – where even if they have access to computers thanks to some philanthropic help, then getting a teacher to teach is another big challenge. Solving for both and helping disadvantaged students learn coding skills is Next Skills 360 – incubated by us. They have developed a patented coding toy called ProGame that helps students without access to computers to develop logical thinking skills essential for coding.

2. Diversity as a Design Imperative

India’s vast cultural and linguistic diversity can be daunting, but it’s also a goldmine for innovation. Startups that tailor their offerings to local nuances—be it language, tradition, or purchasing power—are more likely to succeed. This demands close customer contact and rapid adaptability, both of which are easier for small, agile teams. Take myUDAAN for example, one of our portfolio startups – it provides mobility & care solutions for the elderly and individuals with mobility challenges, connecting users with products and services that enhance independence and quality of life.

3. Leveraging Ecosystem Support

Despite constraints, India’s startup ecosystem is buoyed by government initiatives (Startup India, Atal Innovation Mission), incubators, and a growing network of angel investors and accelerators. Startups can offset their limitations by tapping into these resources for funding, mentorship, and infrastructure.

4. Technology as a Force Multiplier

Digital tools, cloud platforms, and AI are levelling the playing field for Indian startups, allowing them to reach customers in remote areas, optimize operations, and scale rapidly even with limited staff and capital. The rise of affordable smartphones and internet connectivity has unlocked new markets in Tier-2 and Tier-3 cities, making technology adoption a strategic necessity.

5. Strategic Partnerships and Open Innovation

Indian startups increasingly collaborate with corporates, NGOs, and even competitors to overcome distribution and market access challenges. These partnerships can provide reach, credibility, and shared resources, allowing startups to focus on their core innovation.

Innovation around resources requires such coming together of stakeholders, especially when the resource is water. One of our startups, The Rainwater Project is fighting India’s water crisis by working closely with corporate partners, NGOs, Govt. and the community at large.

Conclusion: Embrace Your Startup’s Constraints

Constraints are not just hurdles—they are the very conditions that spark innovation, foster resilience, and drive growth. By embracing frugality, questioning assumptions (a topic that needs more attention), leveraging local insights & staying close to customers, and tapping into the broader ecosystem, startups can unlock creative solutions and build a business that thrives not despite the constraints they face, but because of them.

Ravi Sarkunan leads IIITH’s Social Incubator and has been working closely with social impact startups (both tech-based and otherwise) for the past 10+ years.

Assumptions

Most startup founders we have worked with, started their enterprise in order to tackle a problem they faced themselves or one of their near and dear ones faced or they had come across (heard/read/seen) and which really appealed to them – motivating them to do something (start their startup) about the issue. That was just the beginning of their journey. The real work for startups begins once they start working on the solution to the problem they have identified.

One of the integral aspects of solution development, which often takes the backseat, is the assumptions founders make in the process. While we do discuss this aspect with our cohort founders, there is a need to give more attention to assumptions and the underlying beliefs founding teams have as they take their ideas forward – be it about the need for the solution, customers who need it, their buying behaviours, pricing their products/services and other aspects in areas such as market, timing of market introduction, business, technology or team, finances, etc.

Startups, by nature, operate in environments of high uncertainty. To navigate this, founders must systematically identify the assumptions on which their business is predicated. These assumptions are the beliefs—often untested—that shape decisions about customers, products, markets, and financials. Startups can uncover and clarify critical assumptions and take steps by being deliberate and structured in their approach:

1. Use Frameworks to Map Out Assumptions

Tools like the Lean Canvas and Business Model Canvas help to visually map a startup’s business model and could help surface the underlying assumptions. These frameworks prompt founders to articulate their beliefs about customer segments, value propositions, revenue streams, cost structures, and more. By filling out each section, startup teams can learn about the assumptions embedded in their business plan.

2. Categorize Assumptions by Type

Assumptions typically fall into several categories:

• Desirability: Do customers actually want this product or feature? (e.g., “Users will prefer a feature that allows real-time collaboration.”)
• Viability: Can the business make money from this? (e.g. “Customers are willing to pay $X for this service.”)
• Feasibility: Can we build and deliver this solution with our current resources and technology? (e.g., “Our team can integrate AI capabilities within six months.”)
• Usability: Will users be able to use the product as intended?
• Adaptability: Can the product or business adapt to market or environmental changes?

3. Turn Assumptions into Testable Hypotheses

Rather than vague beliefs, assumptions should be written as clear, testable statements (hypotheses). For example, instead of “People will use our app,” reframe as “At least 30% of users who sign up will use the app weekly in the first month.” This clarity makes it easier to prioritize and test. While the basis for coming up with the 30% figure in above example itself should be based on some market research, testing the hypotheses will involve a similar exercise and customer interactions.

4. Identify the “Business Critical Assumptions”

While startups make many assumptions, not all are equally critical. Focus on those that, if proven false, would fundamentally undermine the business. Common high-impact assumptions include:

• How many customers will we acquire, and at what cost? (Customer Acquisition Cost, CAC)
• How much will each customer pay over their lifetime? (Lifetime Value, LTV)
• What is the cost per sale or per unit? (Cost of Goods Sold, COGS)

5. Collaborate and Brainstorm as a Team

Assumption identification is best done collaboratively. Cross-functional workshops, brainstorming sessions, and assumption mapping exercises help surface implicit beliefs from different perspectives within the team. Feel free to discuss it with advisors, mentors, investors, etc.

6. Use Assumption Mapping Matrices

Assumption mapping involves plotting assumptions on a 2×2 matrix based on their importance to business success and the level of certainty or evidence supporting them. This visual approach helps teams prioritize which assumptions to test first—typically, those that are both important and uncertain.

7. Validate with Research and Experimentation

Once identified, assumptions should be validated through:

• Customer interviews and surveys to test desirability and willingness to pay
• Prototypes, MVPs, or landing pages to test product-market fit and usability
• Technical feasibility assessments with the development team
• Market analysis and competitive research to test viability

Building Better Futures: Social Startups Powered by AIC-IIITH

India’s startup ecosystem is witnessing a surge in social enterprises that are tackling pressing societal and environmental challenges with innovative solutions. While this still stands nowhere close to the number of tech and general startups in the country, the number of tech-based social startups is an even smaller cohort in the broader startup scene. We will explore this very aspect in one of our future articles, that you can check out.

Out of 55+ early-stage social impact startups supported by AIC-IIITH through our various programs, approximately 94% of Startups use tech (IT, mech, chem & bio), 56% leverage IT tech and approximately 12% are Deep tech social impact startups. These startups are from various sectors and tackling varied issues and creating impact.

Here are four standout ventures supported by AIC-IIITH, each making a significant difference in their respective sectors.

Phool.co: Transforming Temple Waste into Opportunity

Founded by Ankit Agarwal in 2017, Phool.co has pioneered ‘flowercycling®’ technology to upcycle temple and farm waste into eco-friendly aromatic products such as incense sticks and compost. The enterprise not only addresses the environmental hazard of floral waste polluting rivers but also creates dignified livelihoods for underprivileged women. Phool.co has raised funding from notable investors like Indian Angel Network, Sixth Sense Ventures, Alia Bhatt, and has been featured in national and international media. Grants from AIC-IIITH enabled the company to expand operations, establish new recycling units. The enterprise is also researching biodegradable alternatives to Styrofoam and leather, furthering its commitment to sustainability and circular economy principles.

Ecowrap: Integrated Waste Management for the HORECA Sector

Founded in 2020 by Angraj Swami and Manoj Sabu, Ecowrap offers an end-to-end waste management solution, especially for hotels, restaurants, and cafes (HORECA). The startup has serviced over 600 clients, diverted more than 4,000 tons of waste from landfills in just two years, and trained 42 women artisans. Ecowrap’s tech-driven approach automates waste collection, segregation, and recycling, reducing illegal dumping and maximizing resource recovery. Support from AIC-IIITH helped Ecowrap acquire 150 clients and automate operations, making waste management more efficient and sustainable.

Next Skills 360: Coding Without Computers for Underprivileged Students

Next Skills 360 EdTech Pvt. Ltd., founded by Suraj Meiyur in 2020, democratizes access to IT and programming knowledge by providing inexpensive kits and educational toys as alternatives to computers. The company has enabled over 200,000 underprivileged students to learn coding without computers, focusing on government and low-income schools. Recognized with five awards at MIT Solve 2021, Next Skills 360 is expanding its reach through partnerships and sustainable revenue growth, thanks in part to AIC-IITH’s support.

myUDAAN: Mobility Solutions for the Elderly and Persons with Disabilities

Founded by Ravindra Singh in 2019, myUDAAN addresses mobility, assistance, and accessibility challenges for people with disabilities and the elderly. Using an Uber-like platform, myUDAAN has provided over 12,000 assistive service bookings, offering on-demand wheelchair mobility and personalized care. AIC-IIITH’s grant helped myUDAAN overcome pandemic-related business challenges, improve its digital presence, and double its monthly revenue, enhancing its ability to deliver impactful services to a vulnerable population.

These enterprises exemplify how innovation, technology, and social commitment can drive sustainable change, create livelihoods, and build a more inclusive society. Their journeys highlight the critical role of incubators and grants in scaling impactful solutions across India.

Since the meeting, we are working on the following:

1. We renewed the agreement with EPAM and are currently running a campaign focusing more on Deeptech startups for a climate tech cohort of 12 startups. We are pushing the applications through climate-tech focused partners such as Climate Collective, conducted outreach event at Pune, planning one in B’lore.
2. Doing the ecosystem analysis to understand general deep tech based social startups scenario – finalizing the ppt. Reviewed 2000+ startups
3. This ecosystem analysis will also provide some data for IOT Climate Change directory.
4. Planned creating different types of content – blogs, articles, etc. Publishing one post per week on website. Planning to publish 2 next week.
5. IOT and Climate Change Event – we have updated the note shared by Nirupa with increased tech elements per your suggestion
6. Plan to conduct the annual conference on Society and Technology post the Climate Change event
7. We are planning to introduce the research connect like approach for AIC startups
8. Exploring to leverage the information collected during the R&D showcase for wider social impact ecosystem

Sir based on our discussion, below is the plan for blogs/features, etc.:

1. AIC Startup Features: 7
   1. Startup profile: Recently graduated startups – 5
   2. Success stories: – 2
2. Our insights (opinion, learning, our value to startups – progs., unique prog. elements, partnership): 5
   1. Partnership: Three Years of Transformative Impact: AIC-IIITH and EPAM India’s Social Tech Partnership [published]
   2. AIC startups solving varied social problems
   3. Opinion: Embracing Limitations: Using Constraints to Fuel Your Startup’s Growth [published]
   4. Opinion: Assumptions Startups make early in their journey
   5. Unique prog. elements: How to Facilitate Startup participation in Acceleration program
3. Event based blogs: 3
   1. AIC Partnered: InnovateX at TISS event blog
   2. AIC Partnered: Social Impact hour at Pune blog
   3. AIC Participated: Startup MahaKumbh 2025
4. Analysis of ecosystem: 5
   1. Data Driven:
      1. AI and Social Startups: An Indian overview [published]
      2. Tech usage in Social Impact Ecosystem
      3. Social Impact: Sectoral Analysis Tech usage
      4. Social Startup in Tech and Business Incubators
      5. Geography of Tech based Social Startups in India
5. Research communication: 2
   1. From team’s readings:
      1. How CV is helping save Fishes?
      2. Economic viability of Gen AI startups: a view from Goldman Sachs

1. AIC’s work areas: 12

1. Startup Programs:
   1. Own Programs:
      • Unique program elements that attract startups to AIC
   2. Corporate Accelerator prog:
      • Three Years of Transformative Impact: AIC-IIITH and EPAM India’s Social Tech Partnership [published]
2. Event based blogs: 3
   1. Outreach events:
      • InnovateX at TISS Tuljapur
      • Social Impact hour at Pune
   2. Events attended: Startup MahaKumbh 2025
3. Startups & Outcomes:
   1. Feature on the range of social tech startups we have supported so far
   2. Profile: Recently graduated startups – 5
   3. Success stories: – 2
4. Stakeholder Partnerships:
   1. Investors:
   2. Mentors:
   3. Other incubators & accelerators:

• Opinions, Insights & learnings drawn from our work: 2

1. Insights: Embracing Limitations: Using Constraints to Fuel Your Startup’s Growth [published]
2. Insights: Assumptions Startups make early on and how they can test them   

• External Ecosystem (our takes and insights)

1. Government policies, announcements, schemes
2. Best Practices of other Social/Social-tech Incubators/Accelerators (Global & Indian)
3. Analysis of ecosystem (Data driven): 5
   1. AI and Social Startups: An Indian overview [published]
   2. Tech usage in Social Impact Ecosystem
   3. Social Impact: Sectoral Analysis Tech usage
   4. Social Startup in Tech and Business Incubators
   5. Geography of Tech based Social Startups in India

• Research communication (Short blurbs based on interesting research outputs): 2

1. Intersection of Tech and broader social/environmental impact:
   1. How Comp. Vision is helping save Fishes?
   2. Economic viability of Gen AI startups: a view from Goldman Sachs
2. Social Impact space
   1. Features based on Research publications by e.g. NASSCOM, Blume Ventures, Impact Innovation Council.