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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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
11
16
20
25
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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
RESEARCH
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
01
02
03
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.
04
05
06
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.
RESEARCH
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
3D
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
02
B2B or B2C products that use foundation models either
largely as in or fine-tuned to a particular use case
Application
03
Tools to curate, host, fine-tune, or manage the
foundation models (eg, storefronts between applications
and foundation models)
Model hubs and MLOps
04
Core models on which Gen AI applications can be built
Foundation models
05
Platform to provide access to computer harware
Cloud platforms
06
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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