India Ranks 6th in Global GenAI Startup Ecosystem

CIOTechOutlook Team | Tuesday, 26 November 2024, 05:11 IST

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India has secured the sixth position among leading economies in the percentage of GenAI startup ecosystems and has further solidified its place in the worldwide generative artificial intelligence (GenAI) scene. A report revealed that funding for GenAI in India increased six times in the second quarter of FY25.

In Q2 FY25, more than 90% of the GenAI funding went to three startups - Nurix AI, Dashtoon, and Mihup. In Q2 FY25, the number of funding rounds increased threefold, with 77 per cent being early-stage investments, such as angel and seed funding.

A report by Nasscom stated that Indian GenAI startups saw an increase in funding to $51 million in Q2 FY25, as opposed to $8 million in Q1 FY25. As per the Generative AI Tracker: Tech Industry Activity in Q2 FY2025 by Nasscom, funding saw a notable increase in Q2 FY25, with 20 funding rounds, showing a robust recovery following a slow Q1. Investments in enterprise applications and Agentic AI led to a 3.4 times increase in total funding compared to the previous year.

During this quarter, GenAI startups saw funding below $12.5 million in seed funding and $15 million in Series A funding. This was mainly because there were no major investments like Krutrim and Sarvam, which had been prominent in the last two quarters.

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