GenAI Startups in India skyrockets! Attracts $750 million Funding in past 12 months

According to a NASSCOM research, the number of Generative AI (GenAI) companies in India increased by 3.6 times, from over 66 in the first half of 2023 to over 240 by the same period in 2024.

Launching 17 native GenAI language models and a notable increase in firms providing GenAI assistants—which now make up almost 80% of newly added startups over the past year—have propelled this explosive growth.

The “India’s Generative AI Startup Landscape 2024” report draws from research on over 240 current GenAI startups and insights from over 110 startup interviews.

According to the report, India’s GenAI firms have raised a total of over $750 million in funding since 2023, despite being in their infancy. Remarkably, compared to 22% in the same period last year, 75% of startups in the first half of 2024 are currently making money.

Approximately 43% of these firms have combined closed and open-source approaches in a hybrid strategy. Three main GenAI areas have grown as a result of this flexibility: infrastructure, applications, and services.

Funding for productivity-boosting apps, such workflow augmentation tools and coding companions, has doubled, and 45 startups—up from 20 in the first half of 2023—are now concentrating on this GenAI topic. Furthermore, the number of startups offering GenAI assistants has increased fourfold to over 130, with many of them switching from conventional AI chatbots to conversational bots or virtual assistants driven by GenAI.

Speaking to this, Sangeeta Gupta, Senior Vice President & Chief Strategy Officer at NASSCOM states, “Over the past 12 months, India’s Generative AI landscape has undergone a seismic transformation, with a wave of innovative product launches redefining industry standards and highlighting new focus areas such as managed LLMs and data-driven services.”

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