Indian GenAI startups see 6x jump in funding in Q2
New Delhi New Delhi: Ranked sixth among major economies in share of generative AI (GenAI) startup ecosystem, India witnessed a six-fold increase in investments in the space of GenAI (quarter-on-quarter) in the July-September period, a Nasscom report said on Monday.Investments were driven primarily by B2B platforms and productivity solutions. Investments in enterprise applications and agentic AI led to a 3.4-fold increase in total funding year-on-year.
Funding activity gained significant momentum in Q2 FY25, with a record 20 funding rounds, reflecting a strong recovery after a sluggish Q1. “The generative AI landscape is evolving rapidly, innovating technology service providers and unlocking new capabilities. Providers are re-evaluating strategies and increasing investments in technology and talent,” said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer, Nasscom. Early-stage investments accounted for 77 per cent of all rounds, including angel and seed funding.
From the first half of 2024, innovative startups such as Nurix AI, Dashtoon and Mihup have paved the way with transformative solutions in workflow management, digital comic creation and conversational analytics for contact centres. According to the report, “Providers have started moving from building use case portfolios to converting active PoCs into production-ready solutions. Partnerships grew by 25 per cent (quarter-on-quarter) with a focus on product enhancements, joint market strategies and government-led skilling initiatives.” Talent strategies shifted from basic AI literacy to advanced and thematic upskilling, with an emphasis on platform integration and agentic AI capabilities. “The growing maturity of the Indian GenAI ecosystem reflects its transition from exploratory use cases to scalable, production-ready solutions. This growth is driven by improving funding flows, increased revenue realisation and expansion of applications across enterprise productivity and customer engagement,” the report noted.
