The Pivot Done Right: The Power of Business Reorganisation Startups that master the art of pivoting—driven by data, market feedback, and strategic foresight—are the ones that thrive. Adaptability isn't just survival; it's the foundation for long-term innovation and success.
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In the ever-evolving world of startups, success is rarely linear. Many businesses begin with a bold vision but often face unforeseen challenges—market shifts, competitive pressures, or misaligned product-market fit. When a business model isn't working, adaptability becomes paramount. A well-executed pivot can be the difference between failure and industry leadership.
At the Tech and Innovation Summit 2025 in Bengaluru, leading Indian VCs and entrepreneurs gathered to discuss the importance of pivoting in business. One of the key takeaways was that pivots are not just about changing direction—they are about realigning with the market, optimising growth models, and making data-backed decisions.
Saurabh Gupta, Founder and CEO of Verismart.AI, emphasised the role of founders' egos in pivoting effectively. "So see, a lot depends on the founder's ego. While it may sound negative, every founder should have an ego, but it must be logical and parallel to making things happen. The right time for a pivot is never obvious—it emerges from market feedback and ecosystem partners. When a founder's ego is driven by data and strong unit economics support the thesis, they should continue scaling. However, if customer feedback is weak, problems remain unsolved, and partners are unconvinced, it's time to subside ego and pivot. Pivots must be data-driven, with strict experimentation timelines."
This insight highlights the delicate balance between persistence and adaptability. The best founders don't blindly chase their original vision—they evolve based on data and feedback.
When and How to Pivot
Abhiram Bhalerao, Partner at V3 Ventures (Verlinvest), supported this perspective, adding that pivots are inevitable at different stages of business growth. "The decision to pivot rests with the founder and management, while investors can only guide. Early businesses may undergo complete model shifts, while larger companies adjust go-to-market strategies. For instance, our portfolio company Dil Foods pivoted from enabling mom-and-pop restaurants on food apps to a cloud kitchen model within six months, now generating INR 15 crore monthly. Similarly, Epigamia, a INR 250-INR 300 crore business, pivoted to quick commerce as its largest and most profitable channel. Pivots occur at all stages, and as investors, we must embrace them."
These examples demonstrate that pivots are not signs of failure but rather indicators of a company's ability to evolve. A startup that realises its initial model isn't viable must be quick to test new strategies, whether that means shifting business models or adopting new technology-driven approaches.
Saurabh Gupta shared his own experience, stating, "This is my third venture, having previously sold two companies. In this journey, we've had our fair share of pivots—more of an evolution in identifying the right product-market fit. We started as a regulatory tech company but realised that long-term profitability depended on regulatory acceptance. Seeing limitations, we expanded into a data intelligence framework, opening a much larger market beyond just regulated institutions. Instead of serving 100-150 clients, we could now reach 20,000+ B2B customers."
His experience underscores a crucial lesson: successful pivots don't just address immediate challenges; they unlock larger opportunities.
The Future of Business Adaptability
The discussion at the Tech and Innovation Summit also touched upon emerging trends shaping pivots in today's market, particularly AI and quick commerce. As Bhalerao noted, Kuku FM, a content platform that started in 2011, doubled its subscriber base and expanded its content library significantly in 2024, thanks to AI-driven efficiencies. Similarly, the shift in consumer behavior toward premium F&B and fresh produce has led to rapid innovation in platforms like Zepto and Blinkit.
Beyond these industry-specific pivots, a broader question looms: Will India become a creator of foundational AI models, or will it remain a consumer of global technology? Gupta warned, "Without patient capital, we focus on quick results rather than deep tech. The challenge for Indian entrepreneurs is: do we build AI in India for the world, or do we continue adapting existing technologies?"
The ability to pivot effectively—whether in AI, consumer tech, or business models—will define the next wave of successful startups. The companies that thrive will be those that embrace change, remain agile, and listen to the market.
