GenAi Startup Landscape in India 2024

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GEN AI

Startup

Landscape in

India 2024

The report provides comprehensive insights into

the Gen AI startup landscape in India.

RESEARCH

Aug 2024

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insights into modern markets.

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RESEARCH

CONTENT

Gen AI Startups in India

Global Gen AI Market Overview

Executive Summary

Geographical Distribution of Gen AI

Startups

Funding for Gen AI Startups in

India

List of Gen AI Startups in India

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EXECUTIVE SUMMARY

G E N A I S T A R T U P L A N D S C A P E - I N D I A

Gen AI or generative artificial intelligence

refers to the use of AI to create content,

including text, images, music, audio, and

videos. Gen AI functions by using a machine

learning model to analyse and understand

the patterns within a dataset of human-

created content. It analyzes the data to

identify patterns and then uses these

patterns to create content.

Customer interactions with improved chat

and search functions and explores

unstructured data through conversational

interfaces and summaries the data.

Additionally, it can automate repetitive

tasks such as RFP responses, multilingual

marketing content creation, and contract

compliance checks.

From 2021 to 2024, the number of Gen AI

startups in India have increased

significantly. The rapid expansion is driven

by substantial venture capital investments,

presence of skilled workforce, and the

concentration of startups in major tech hubs

across India.

Cities such as Bengaluru, Mumbai, and

Delhi-NCR remain the leading hubs for Gen

AI startups, this can be attributed to to their

abundant talent pool and resources.

Hyderabad, accounting for 7.2% of Gen AI

startups, is emerging as a key hub with its

advanced infrastructure and robust IT and

pharmaceutical sectors. Chennai, with 3.6%,

is thriving as a SaaS hub, hosting a

significant concentration of product

organizations and R&D labs. Ahmedabad,

making up 2.7%, is developing as a tech hub,

bolstered by premier institutions like IIM

Ahmedabad.

Moreover, the funding for Gen AI startups

has surged, with a significant focus on

early-stage investments. Seed funding

accounts for 54% of the funding rounds,

followed by Series A at 27%, indicating

strong support for new ventures. This

financial backing has been crucial in driving

innovation, scaling operations, and

attracting top talent to the sector.

Among the most valued Gen AI startups in

India, companies like Krutrim and Sarvam AI

stand out for their innovative AI solutions

and significant market presence. These

startups are leveraging their funding to

advance AI models, expand infrastructure,

and scale operations, setting the stage for

further growth and development in the

sector.

India hosts ~150 Gen AI startups in

2024, a surge fueled by growing funding

rounds that offer capital for scaling,

research and development, and market

expansion. Government initiatives, such

as the National AI Strategy and the

Startup India program, bolster this

growth.

G E N A I S T A R T U P L A N D S C A P E - I N D I A | 4

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G E N A I S T A R T U P L A N D S C A P E - I N D I A | 5

The global Gen AI market is

projected to grow from USD

39.2 billion in 2023 to USD

1082.4 billion by 2033. The

market is anticipated to

expand at a CAGR of 40.22%

from 2024 to 2033.

There are over 150 Gen AI

startups currently operating

in India.

51.4% of India’s Gen AI

startups are based in

Bengaluru, positioning the

city as a leading hub for

Gen AI startups in the

country.

KEY HIGHLIGHTS

In 2024, Krutrim AI raised

USD 50 million in funding.

54.0% of AI startups

obtained funding in their

seed round.

Gen AI startups such as

Krutrim AI, Sarvam AI, EMA,

NeysaNetworks, Raga AI

have all received

substantial funding in 2024.

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This section provides an overview of

the global market size for Gen AI,

and offers insights into the

application landscape and value

chain of Gen AI startups.

Global Gen AI

Market

Overview

RESEARCH

Services

Software

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

Gen AI

Global Market Size Overview

Total Market Size by Key Components

(2023-2033)

USD BILLION

The global Gen AI market is projected to

grow from USD 39.2 billion in 2023 to USD

1082.4 billion by 2033. The market is

anticipated to expand at a CAGR of

40.22% from 2024 to 2033.

By 2033, Gen AI services will grow to USD

564.5 billion, while software grows to USD

517.9 billion. This indicates that services

will eventually surpass software in terms

of market size, despite starting from a

smaller base.

G E N A I S T A R T U P L A N D S C A P E - I N D I A | 7

40.2%

45.0%

35.1%

Total Gen AI

Market CAGR

Gen AI Services

Market CAGR

Gen AI Software

Market CAGR

2023

2033

$39.3B

$1082.4B

40.2%

2023

2033

2023

2033

$13.7B

$564.5B

$25.5B

$517.9B

Growth Rate by Key Components (2023-2033)

In 2023, Gen AI services account for 35%

of the market, amounting to USD 13.7

billion, while software accounts for 65%,

amounting to USD 25.5 billion.

The services component grows at a

slightly higher CAGR of 45.0%, indicating

an even faster expansion compared to

the overall market.

G E N A I S T A R T U P L A N D S C A P E - I N D I A | 8

Gen AI

Global Market Size Overview

RESEARCH

The Gen AI

Application Landscape

Marketing

(Content)

Code

Generation

Image

Generation

Sales

(email)

Code

Documentation

Consumer/Social

Support

(chat/email)

Text to SQL

Media/Advertising

Marketing

(Content)

Note Taking

Others

TEXT

Web App

Builders

Design

CODE

IMAGE

OTHERS

Audio

Gaming

RPA

Music

Biology &

Chemistry

VIDEO

Video

editing/scenes

3D Models/scenes

G E N A I S T A R T U P L A N D S C A P E - I N D I A | 9

RESEARCH

SPEECH

GEN AI

Value Chain

01 Services around specialized knowledge on how to leverage

Gen AI (eg, training, feedback, and reinforcement learning)

Services

B2B or B2C products that use foundation models either

largely as in or fine-tuned to a particular use case

Application

Tools to curate, host, fine-tune, or manage the

foundation models (eg, storefronts between applications

and foundation models)

Model hubs and MLOps

Core models on which Gen AI applications can be built

Foundation models

Platform to provide access to computer harware

Cloud platforms

Accelerator chips optimized for training and running the

models

Computer hardware

G E N A I S T A R T U P L A N D S C A P E - I N D I A | 1 0

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