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