A Strategic FP&A Framework for Indian Startups: Modelling Financial Sustainability and Growth
DHRUV SINGHAL
School of Business, Galgotias University dhruv.23gsob2010649@galgotiasuniversityedu.in, May 2025
Abstract
This research investigates the relevance and application of Financial Planning & Analysis (FP&A) in Indian startups. Startups often struggle with financial instability, poor forecasting, and inefficient resource allocation. The study uses primary data collected via Google Forms from 30 startup professionals and secondary research from journals and reports. The results show limited FP&A implementation despite moderate awareness. Budgeting is mainly done through Excel with minimal forecasting practices. The research proposes a practical, Excel- based FP&A model designed for startup environments, bridging the gap between complex financial systems and startup resource constraints. This framework aims to support better decision-making, funding preparedness, and sustainable growth in the Indian startup ecosystem.
This study is grounded in the belief that the financial success of a startup hinges on its ability to adapt and forecast in real time, rather than rely on reactive decisions. Indian startups face a unique blend of opportunities and risks—ranging from rapid digital adoption to funding winter cycles—which make FP&A more critical than ever. By studying both primary data from 30 startup professionals and secondary sources from credible journals and reports, this paper uncovers trends in budgeting, forecasting, and financial control practices in startups. The analysis reveals a significant awareness gap in formal FP&A frameworks, but also shows high interest among entrepreneurs in simplified Excel-based tools and scenario modelling. The research not only contributes to the literature on startup finance but also serves as a guide for startup founders who wish to embed sustainability into their business models through effective financial planning.
