Building a hardware startup in India is tough. Here’s how to rise to the challenge

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Sai Kiran was about to launch his first product offering – Teewe, a media streaming device. He knew setting up a hardware startup would be challenging, given India’s limited resources for hardware manufacturing, but went ahead anyway.

He ended up losing US$100,000 when he sought to make a prototype in India for Teewe.

The local manufacturer pulled out a week before the product launch, eroding the capital available with the company. The team had to eventually turn to China to solve the manufacturing glitch, Sai, Creo founder said at the Blueprint Workshop organized by 500 startups and Autodesk in Bangalore on Saturday.

Sai isn’t alone. Despite the hype around PM Narendra Modi’s Make in India program, the country’s startup hardware ecosystem is yet to get a kickstart.

“Hardware is definitely at a disadvantage in India. Investors perceive hardware to be more cost-intensive. Hardware companies have far riskier bets than software,” said Soaib Grewal, venture partner at 500 Startups and design mentor at Microsoft Accelerator.

Yet, some remain optimistic.

But a hardware startup needs a lot more than just a high-quality prototype to succeed.

With the creation of maker-spaces in major metros such as IKP-EDEN incubator and Workbench Projects in Bangalore as well as Maker’s Asylum in Delhi and Mumbai, startups have access to relevant machinery to make prototypes. What’s more, products like Autodesk’s Fusion 360 provide hardware startups a platform to create a proof-of-concept on your laptop. And it’s free for early-stage startups.

But a hardware startup needs a lot more than just a high-quality prototype to succeed. We’ve got you covered: Tech in Asia caught up with some industry experts at the Blueprint workshop to get some useful mentorship for you. Here’s a peek:

Photo credit: Slate.

Build to solve local problems

If your ambition is to conquer the world, this might be difficult to achieve.

But the most effective way to make a hardware product succeed is to identify niche problems and address them. Prashant Subhedar of Bang Designs, which advises hardware companies in the design and manufacturing stage, says that a hardware product should be made relevant and useful.

Keep software integration in mind

Plan your costs ahead

Don’t compromise on prototype quality

Don’t be swayed by the ‘make in India’ wave

Diversify your team