India may not be as advanced in AI as San Francisco, but it has a wealth of engineering talent that is now turning into founders and builders of AI startups. The AI startup ecosystem in India is growing, with some startups attracting funding for their innovative solutions.
Funding for AI startups in India is still limited compared to the U.S. and Europe, but there are signs of progress, especially in areas like generative AI. Some Indian startups are focusing on addressing local needs, such as integrating local language support into AI models to cater to Indian consumers.
Despite the challenges, Indian startups like Pepper Content and Pocket FM are leveraging AI to expand beyond India and enter international markets like the U.S. However, funding for AI startups in India dropped by nearly 80% in 2023, highlighting the need for more investment in this sector.
Lightspeed Venture Partners India has invested over $150 million in AI startups in the last 18 months, showcasing the potential for growth in this space. Global and local investors are actively looking for AI startups in India to diversify their portfolios and capitalize on the country’s talent pool.
Some notable Indian AI startups that have raised significant funding include Krutrim, Sarvam AI, Mad Street Den, Wysa, and Neysa Networks. These startups are working on a range of AI solutions, from language models to mental health chatbots and computer vision technology.
In addition to these established startups, there are emerging AI startups in India worth watching, such as Upliance AI, Scribble Data, Expertia AI, OnFinance, Helium, Soket Labs, Kissan AI, and Shorthills AI. These startups are innovating in various sectors, from home appliances to finance and agriculture, showcasing the diversity and potential of the Indian AI startup ecosystem.
Overall, while funding for AI startups in India may be limited compared to other regions, the country is home to a growing number of innovative startups that are pushing the boundaries of AI technology and creating solutions tailored to local needs. With the support of investors and the continued growth of the ecosystem, the future looks bright for AI startups in India.
