From software services, India’s tech industry is slowly witnessing a shift towards product space

From a focus on software services, India is slowly witnessing a shift towards a product space. The country is seeing increasing adoption of apps of all hues. Companies are also developing apps for easy access to their service offerings. Techugo is one of those companies, which started its journey in 2025 when app development was not in fashion.

With a fast-mover advantage, the company counts many global and Indian firms as its clients. In a conversation with the Bizz Buzz, Techugo’s CEO, Abhinav Singh said that the company is leveraging AI tools for making the mobile apps scalable. He said that while vibe coding has made it easy for developing apps, it requires professional help make it scalable.

The company, which is bootstrapped since inception, is hopeful of touching a turnover of Rs50 crore by the end of next year. He said that India is witnessing a significant rise in product development with the growth of startup ecosystem.

According to him, the incentives given to startups by government agencies and the recent Trump administration policies on immigration may prompt many technology entrepreneurs to build innovative products from India for the world.

Can you please provide a brief overview about Techugo? What is the motivation behind starting the company? How has been the journey so far?

We are a 10-year-old company. We started in 2015. I came from a similar experience before. I started my first company in 2011 and sold it in 2024. We are one of India’s first people, who started the mobile app development company.

When I exited from my first firm, we realised that there were very few firms in the mobile app development space. We started the company with a simple aim of developing product which can scale. Developing a product and developing a scalable product are two different things altogether.

The app, which we developed has an average download of around 200,000. That is the average download we get in our apps. We usually see clients coming to us because their applications become slower because of more users coming in.

That is the reason that we have entered into an agreement for developing app of Mother Dairy. Now, we are redefining the entire technology stack for Mother Dairy. We were able to win this contract because we had delivered multiple such projects to enterprises.

India is primarily made a name in the services side of technology and is not known as a product nation. What kind of steps should be taken to make India a software product nation? Can you provide some views in this aspect?

If you see the past 10 years, then we could have done many things that would have helped to develop software products in the country. However, things have changed in the last three years. India has already come up in a way to show that it is not only a services economy but it is now entering into product development as well.

India has already created product that are competing at the global stage. Companies like Zoho have already developed products with global adoption. So, Indians are coming up with products which are developed in the country for the world.

Though the numbers are low, it is increasing. With the government push for the development of startup ecosystem, it is happening. Also, recent rules under the Trump administration, especially raising of the visa fee to $100,000, may help India to get back some of the immigrants to come back to India.

This may help India to develop many more products in the coming years and compete globally.

Can you provide us with the share of apps that you develop in the B2B (business to business) and B2C (business to consumer) spaces? Is the share of B2C app more for you?

Out of the total apps we develop, around 70 per cent of the apps are in the B2C space or they are consumer-facing businesses. Around 25 per cent are in the B2B space and the rest 5 per cent are legacy companies.

Legacy companies mean these companies have more than 50 years of history with big revenues but are working in a very conventional way. We help these legacy companies to be digitally transformed. We provide digital consultation services under which we provide a range of services to companies.

Are you leveraging generative AI tools for building apps? How are you using AI in the app design, development and operations? Can you throw some light in this aspect?

The adoption of AI has been increasing the apps and we are leveraging it in many ways. We develop our apps leveraging the ChatGPT and Llama models. It depends on customer preference which model we use. Our code is audited by third party agency and our apps are end-to-end encrypted.

Have you raised capital so far? Are you planning to raise capital in the near future? Can you throw some light on the revenue and profitability?

We always have been boot-strapped. We have not raised capital so far. As far as profitability is concerned, we are profitable and have decent cashflow. In terms of revenue, we are doing a turnover of around Rs37 crore and are likely to touch Rs50 crore mark in the next financial year.

As far as expansion plans are concerned, we are planning to enter into Middle East with opening up office in Dubai. We currently have offices in India and Canada. So, by end of 2026, we are likely to touch Rs50 crore. We are not planning to raise capital in the future. Margins are at decent level for us.

People are able to develop app through vibe coding. Do you see this new technology feature as a threat to your operations? What are your views in this matter?

Through vibe coding, people can develop their own apps. However, these apps are not easily scalable. Because the technology behind developing these apps through vibe coding is old. New technology applications have come in in the app development domain, which is still missing in the vibe coding space.

Also, an app which is developed through AI and is very fast doesn’t make it scalable. However, vibe coding has been able to help many entrepreneurs to validate their ideas before launching those on a full-fledged basis.

We have seen instances where entrepreneurs coming to us for developing scalable apps once they get customers from apps, developed through vibe coding. So, in a way, it has benefitted us because it is making app ecosystem vibrant.