Despite a decline in funding for AI startups in India in 2023, the country’s emerging AI startup ecosystem showcases innovation in generative AI and language models. Key players like Krutrim and Sarvam AI are drawing investments, while investors like Lightspeed India are actively supporting the sector.
India’s Emerging AI Startup Ecosystem
India, though distant from San Francisco’s renowned tech hub, is cultivating a robust AI startup scene driven by its vast engineering talent. Amidst a backdrop of constrained funding, Indian AI startups are innovating to address local and global challenges, particularly in generative AI and language models.
In 2023, funding for AI startups in India saw a steep decline, dropping nearly 80% to $113.4 million from $554.7 million in 2022, as per Tracxn data. Conversely, U.S. AI startup funding surged to $16.2 billion from $5.2 billion. Despite this, certain Indian startups are attracting significant investments, focusing on consumer applications and niche markets.
Key Players:
– Krutrim: Headed by Bhavish Aggarwal, India’s first AI unicorn specializes in large language models for Indian languages and English.
– Sarvam AI: Founded by Vivek Raghavan and Pratyush Kumar, this startup partners with Microsoft to develop voice-based AI tools.
– Mad Street Den: Focuses on computer vision AI solutions for various industries, aiming to globalize their technology.
– Wysa: Offers an AI-driven mental health chatbot, serving over 6.5 million users across 95 countries.
– Neysa Networks: Provides generative AI platforms for businesses, focusing on AI/ML security and observability.
Other Notable Startups:
1. Upliance AI: Integrates AI with home appliances for cooking.
2. Scribble Data: Develops AI assistants for insurers in North America and Europe.
3. Expertia AI: Automates business recruitment processes with AI.
4. OnFinance: Offers AI co-pilots for financial institutions.
5. Helium: Assists e-commerce brands with AI-powered storefronts.
6. Soket Labs: Specializes in multilingual LLM research.
7. Kissan AI: Focuses on AI solutions for agriculture.
8. Shorthills AI: Builds custom AI tools for enterprises.
Investors like Lightspeed India are actively investing in this burgeoning sector, having allocated over $150 million in the last 18 months. Indian AI startups are also garnering interest from global and local investors due to favorable geopolitical and data sovereignty conditions. With support from funds like Seafund Venture India Trust, which is raising funds to focus on deep-tech and AI among other sectors, India’s AI landscape continues to evolve amidst challenges and opportunities.
