India’s AI Uprising
GenAI, AI Agents & The Future Of Startups, REPORT 2025
Table Of Contents
The State Of India’s Internet Economy
The State Of Indian Startup Economy
AI Ecosystem: A Global Overview
The Global AI Value Chain
The AI Effect: Stocks Soaring On AI Demand
Tech Giants Back Global AI Startups In Talent And IP Race
Open Vs Closed Source Models Performance Benchmarks
Frontier Models: Cost, Performance & Access
The Growing Demand For Sovereign AI
The India Story: Startups, Incumbents & The Market Opportunity
India’s Artificial Intelligence Business Landscape: Incumbents
Vs Challengers
The Market Opportunity
India Overtakes China In AI App Downloads For 2024
India’s Artificial Intelligence Startup Landscape
Decoding Indian AI Startup Funding Trends
Key Segments
Top AI Startup Hubs
Notable M&As
Most Active AI Startup Investors
Notable Women-Led AI Startups
Decoding Agentic AI
AI Agents: The Hype, The Tech, And What It All Means
Three Phases Of Agentic AI Integration In Business
AI Agents Startup Landscape In India
The State Of AI Talent & Workforce In India
Methodology
Bibliography
India’s Internet Boom: 1.2 Bn+ Users By 2030
Source: KANTAR, IAMAI, Inc42 Analysis
Inside India’s Startup Boom
Startup Ecosystem Globally, Measured By The Number Of Startups & Unicorns
Total Number Of Tech Startups Launched
Total Funding Raised By Indian Startups Since 2014
Total Number Of Unicorns
Combined Valuation Of Indian Startups
Total Number Of Soonicorns
Total Number Of Direct Jobs Created
Total Number Of Active Investors
The Global Overview
The Global AI Value Chain: Who Builds What
Provides the computing power and physical infrastructure essential for AI workloads, including specialised processors, memory, and networking.
Develops and maintains the core Al models and algorithms that serve as the basis for most Al models at scale.
Provides the cloud computing resources, storage, and networking infrastructure needed to train and deploy Al models at scale.
Offers tools, frameworks, and platforms that enable developers to build, test, and deploy Al applications efficiently.
Creates user-facing applications and solutions that leverage Al capabilities to solve specific business or consumer needs
Consumer (B2C Applications)
Business (B2B Applications)
Source: Inc42
Note: This slide does not provide an exhaustive list of all the players active at each layer of the AI ecosystem.
AI Race By The Numbers: India vs The World
Market Size (2030)
Total AI Patents Granted (2022)
Median Pay Scale Of AI Engineer
Total Data Centres
#Count Notable ML Models (2023)
AI Regulations Sentiment
Focus On Sovereign AI Development
Source: Inc42 Analysis, Epoch AI, WIPO, Stanford Global AI Index 2024
The AI Effect: Semiconductors Win Big In The
AI Arms Race
Source: Inc42 Analysis
Note: The stock price is from 2020 to 22 May 2025. For each sector mentioned, the stock prices of the top 10 organisations by market capitalisation are indexed for this research.
As AI Matures, All Eyes Shift to Application-Layer Industries
The public launch of ChatGPT-3 in November 2022 initiated a worldwide competition in artificial intelligence, leading to an extraordinary increase in the demand for semiconductors. This surge has mainly advantaged companies like NVIDIA and AMD, which have leveraged the rising demand for AI training and implementation.
While the semiconductor industry has experienced significant growth, other sectors, such as technology services, banking, retail, and energy, are yet to fully leverage AI's potential. From 2025, the effect of AI is predicted to shift from semiconductors to application-layer industries, such as technology services, banking and financial services, retail, and energy, among others.
The semiconductor industry's rapid growth, driven by the AI arms race, has established a foundation for broader technological transformation. However, the true measure of AI's impact will be determined by its adoption across application-layer industries such as technology services, banking, retail, and energy. As the sector transitions from hardware-driven growth to software-enabled innovation, the success of AI will depend on how these industries integrate and scale AI capabilities.
The coming years will reveal whether this shift catalyses sustainable growth or if the promise of AI remains unrealised due to challenges in implementation and regulation. For now, the industry stands at a crossroads, balancing optimism with the recognition that the road ahead requires strategic foresight and adaptability.
Source: Inc42 Analysis
The Magnificent Seven: Stocks Soaring
On AI Demand
The Magnificent Seven (M7) refers to the top-performing growth stocks of seven globally renowned tech giants, each with a market capitalisation of approximately $1 Tn or more.
Among them, NVIDIA has witnessed the sharpest growth trajectory since the launch of ChatGPT-3 in November 2022 — driven by its dominance in the GPU market, positioning it as the default choice for AI companies building and fine-tuning foundational models.
Source: Inc42 Analysis
Note: The stock price is from 2020 to 22 May 2025.
The
Among The Magnificent Seven Companies
Source: Inc42 Analysis The market capitalisation and stock price used in this analysis are as of February 28, 2025.
AI Boom ≠ Dot-Com Bubble: Here's Why
The current AI-driven market valuations remain significantly below both the dot-com bubble peak and the pandemic high, suggesting potentially more sustainable growth fundamentals.
The 25-year dataset demonstrates three clearly defined valuation periods — the dot-com bubble (8X+ EV/Revenue), the pandemic peak (7X+), and the current AI-driven market (<5X). This historical perspective provides crucial framing for evaluating today's valuations.
Despite the ongoing debate surrounding the true expectations and impact of AI, the momentum suggests a positive outlook for the technology. According to a recent C-suite executive survey by EY India, 64% of Indian organisations have either initiated or completed GenAI proof-of-concepts.
Source: Blackrock, Inc42 Analysis
Tech Giants Back Global AI Startups In The Race For
Talent & IP
Source: CB Insights, Inc42 Analysis
From PCs to smartphones, startups have often disrupted markets dominated by bigger players. In the 1980s, Apple's launch of the Apple II personal computer transformed the market, despite IBM's dominance. Similarly, while Google made early strides in transformer-based LLMs, it was OpenAI's GPT-3 that defined the future of AI.
Therefore it is important for market leaders to have their best foot in the startup space, where innovation and talent are the prime motivators.
While most of the startups backed by these companies are outside India, firms like NVIDIA, Google, Microsoft, and Amazon are active in the Indian startup ecosystem through their corporate venture capital (CVC) funds or startup accelerator programmes.
China Closes In On US In AI Race, India Still On The Sidelines
Chinese AI models not only match the performance and accuracy of American models but are also more cost-effective. For instance, processing one million tokens costs $2.19 with Deepseek, which is 96% cheaper than ChatGPT's $60
Source: Artificial Intelligence Index Report 2025, Inc42 Analysis
India Chooses Innovation-Driven AI Governance,
Mirroring US, Not EU's Restrictiveness
Source: Inc42 Analysis, IAPP Research and Insights
Note: Sentiment Analysis Score (0-10): Reflects the perceived strictness of AI regulation, with 0 being very laissez-faire and 10 being highly restrictive.
The EU’s AI Act, in effect since August 1, 2024, sets strict, uniform rules and restricts certain AI uses, earning a strictness score of 9/10. In contrast, the U.S. takes a more flexible approach, focusing on concerns like deepfakes and bias, with a moderate strictness score of 5/10.
Open Source Models Are Gradually Approaching The Accuracy Of Closed Source Models
On the MMLU (Massive Multitask Language Understanding) benchmark, open source models are narrowing the accuracy gap in comparison to closed models
Source: Epoch AI, Inc42 Analysis
The analysis is based on data available as of November 2024.
GPT-4 (original)
Claude 3 opus
PaLM 540B
code- davinci-002
Gopher 280B
text-davinci-001 BLOOM-176B
LLaMa-1 65B
LLaMa-2 70B
LLaMa-3 70B
Open Vs Closed Source Models: Tackling Ph.D. Level
Science Queries
Beyond the 70% accuracy threshold, closed source AI models hold an advantage over open source models
AI performance on a set of Ph.D.-level science questions
GPQA Diamond Accuracy
Hosted access no API Open weights (non-commercial) Open weights (unrestricted) Open weights (restricted use) AI performance on a set of Ph.D.-level science questions
API access
Expert Human Level
Diamond Accuracy) Random Guessing
Claude 3 Opus Claude 3.5 Sonnet
Claude 2
Source: Epoch AI, Inc42 Analysis
Note: The analysis is based on data available up to April 2025
When Will Public Data For Training AI Models
Be Exhausted?
At the current rate, language models will exhaust 300 Tn tokens of human-generated public text available for training between 2026 and 2032
Estimated stock of humangenerated public text; 95%CI
Dataset sizes used to train notable LLMs; 95% CI
Source: Epoch AI, Inc42 Analysis
Global Frontier AI Models: A Price-to-Performance
OpenAI models command a higher premium for the performance they deliver compared to their competitors
Source: LMArena, Inc42 Analysis
Training Frontier AI Models May Cost Over $1 Bn
By 2027
Since 2016, training costs for frontier AI models have risen by 2x to 3x times each year
90% CI of mean Regression mean Using estimated cost of
Amortised hardware and energy cost to train frontier AI models over time (Cost in 2023 USD, Log Scale)
Source: Epoch AI, Inc42 Analysis Note: Viewers of this file can see comments and suggestions
GPT-3 175B (davinci)
Nearly Half Of All Frontier AI Models Are Developed In
The United States
Among the 197 known frontier AI models, 89 (45%) were developed in the US, with China following at 61 (31%)
Source: Epoch AI, Inc42 Analysis Note: This data is from January 2020 to April 2025
Decoding The Growing Demand For Sovereign AI
What Is Sovereign AI?
Sovereign AI refers to a country's ability to develop and deploy artificial intelligence using its own infrastructure, data, workforce, and business networks. This concept encompasses both physical and data infrastructures. Specifically, it includes sovereign foundation models, such as large language models, which are created by local teams and trained on local datasets. This approach aims to promote inclusivity by reflecting specific dialects, cultures, and practices.
Key Factors Fuelling The Demand For Sovereign AI
Data Sovereignty & Regulatory Compliance: The sovereign AI movement is closely tied to broader data sovereignty concerns, as nations aim to control citizens' information within their borders. This is especially notable in regions with strict data protection laws, where cross-border data transfers are increasingly scrutinised and regulated.
Technology Self Sufficiency: The sovereign AI movement mirrors broader geopolitical shifts towards technological self-sufficiency. In Europe, there's a strong emphasis on digital sovereignty and reducing reliance on American or Chinese technology providers.
Representation, Indigenous Language & Cultural Heritage: Foundation models trained on local datasets promote inclusiveness by reflecting specific dialects, cultures, and practices. This is crucial for sovereign AI, which aims to preserve linguistic diversity and revitalise indigenous languages. Culturally-attuned AI models ensure that technology respects and reinforces local practices, rather than imposing external cultural paradigms.
Source: Inc42 Analysis, Artificial Intelligence Index Report 2025, Secondary Sources Note: The patents that have been analysed in the analysis date from 2010 to 2023.
The India Story: Startups, Incumbents
& The Market Opportunity
India's AI Market To Surpass $17 Bn+ By 2030
More than one-third of the revenue generated in the AI industry is anticipated to come from software sales and IT services
As organisations transition from proof-of-concepts (PoCs) to production-ready applications in the integration of artificial intelligence, the revenue generated by software and IT services related to AI is anticipated to rise.
In 2025, it is estimated that over 50% of software offering AI-powered solutions will command a premium. This suggests that software providers are anticipating an increase in the production-ready deployment of AI and generative AI technology within their businesses.
According to a recent C-suite survey by EY India, 34% of Indian organisations have already completed their proof of concept with AI technology integration and have transitioned the application to production-ready deployment.
Source: Inc42 Analysis, Gartner (for India’s IT spending)
Note: The
India’s Artificial Intelligence Business Landscape:
Incumbents Vs Challengers
Incumbents
Challengers
As AI infrastructure evolves at breakneck speed, it's the agile startups — not legacy enterprises — that are staying ahead of the curve. In India, the gap is clear: while 66% of unicorns have already deployed GenAI solutions, only 15–20% of traditional enterprises have moved past basic experimentation (according to EY India). In this race, speed and adaptability are proving to be bigger assets than scale.
Incumbents: Established organisations offering AI-based products and services.
Challengers: New age/startup organisations offering AI-based products and services.
Explore 140+ Indian AI Startups
What Is Enterprise & Consumer AI?
Enterprise AI
Enterprise AI focuses on transforming business operations and decision-making processes through bespoke solutions designed for organisational requirements. Enterprise AI adoption is particularly strong in banking, manufacturing, and healthcare sectors, with organisations investing significantly in AI for competitive advantage and operational efficiency.
Key Applications
Automated Insurance Claims Processing
Customer Sentiment Analysis
Data Management & Analytics
Document & Contract Management
KYC Process Automation
Precision Agriculture Solutions
Software Development
Supply Chain Optimisation
Consumer AI
Consumer AI focuses on individual needs over business. Accessible often through subscription-based applications designed for personal productivity, entertainment, and daily task assistance. The Indian consumer market has demonstrated particular affinity for vernacular language capabilities, mobile-first interfaces, and solutions addressing distinctly local challenges.
Key Applications
AI-Based Tutors
Health and Fitness Tracking
Image Enhancement & Editing
Multilingual Virtual Assistants
Personal Finance Management
Real Time Language Translation
Smart Home Automation
Travel Planning Assistants
Source: Inc42, Secondary Sources
Note: This is not an exhaustive list of all key applications in Enterprise and Consumer AI
What Separates The Leaders From Laggards In Enterprise AI Adoption?
Leaders are actively leveraging AI tailored to their specific needs, utilising the organisation's knowledge base
What primarily hinders traditional businesses from adopting AI as quickly as new-age companies and startups is their failure to establish a robust and effective data strategy.
Organisations with a robust and scalable data strategy find it easier to develop and manage their own knowledge bases (vector databases), enabling them to execute tailored AI functions.
The importance of an organisational data strategy is further highlighted by the fact that 68% of leaders in the Kearney analysis had more reliable data management processes compared to laggards.
Source: Kearney Global AI Assessment (AIA) 2024, Inc42 Analysis
Tech Sandwich An Ideal Approach For Scaling Enterprise AI
A "tech sandwich" approach combines centralised IT-managed data and AI with inputs from various business departments and teams
Before integrating artificial intelligence into their business operations and strategy, organisations must clearly define the expected outcomes and be aware of the pace of AI adoption within their industry.
A tech sandwich approach, combined with an organisation's AI ambition, can generate a positive return on investment (ROI) for AI adoption costs. This is significant, given that nearly 50% of CIOs report that AI adoption has not met their ROI expectations.
Given its flexibility and inclusiveness (input from various business departments), a tech sandwich approach is ideal for organisations to deploy and scale AI effectively and efficiently.
Source: Gartner, Inc42 Analysis
AI Is No Longer Optional, Founders Say It's Core To Their Strategy
An Inc42 survey finds that 94% of Indian startup founders view GenAI as a strategic business priority rather than a passing trend. While most have already deployed or are piloting AI solutions, only 6% say they haven’t implemented AI in their organisations yet
Yes, but only in pilot/testing phase
No plans to implement at this time
Yes, we have fully implemented GenAI solutions
No, but planning to implement within 12 months
No, but considering it for the future
Question asked: Have you officially implemented GenAI technology based solutions in your organisation?
Source: Inc42’s The Pulse Of Tech Annual Founder Survey, 2024
Note: Based on survey of 100+ Indian startup founders (seed, growth and late stage startups)
Smartphone Apps Mentioning AI Hit 17 Bn+
Downloads In 2024, Led By India
In 2024, smartphone apps mentioning AI were downloaded over 17 Bn times worldwide, marking a 3.4x increase from over 5 Bn downloads in 2019
17 Bn+ Downloads
Source: Sensor Tower, Inc42 Analysis
Note: Downloads across iOS and Google Play. iOS only for China. Includes apps with at least 50,000 worldwide all-time downloads across iOS and Google Play. Includes apps mentioning "AI", "GPT", or "OpenAI" in their app name, app description, subtitle (iOS), or short description (Google Play).
India Crowned ChatGPT As The Most Downloaded AI
App In 2024
Five of the top ten apps downloaded in India are AI-based photo editing apps, highlighting a robust demand for these apps compared to other leading consumer internet markets
Source: Sensor Tower, Inc42 Analysis
India Overtakes China In AI App Downloads For 2024
However, it's worth noting that India ranked bottom for In-App purchases amongst the world's top ten economies
Source: Sensor Tower, Inc42 Analysis
Note: Data for China is only limited to the mainland. The countries are ranked based on their total app downloads.
India Outpaces China In AI App Spending Growth
For 2024
In 2024, smartphone users in India splashed out $12 Mn (198% year-on-year growth) compared to China's $29 Mn (24% year-on-year growth).
Source: Sensor Tower, Inc42 Analysis
Note: Data for China is only limited to the mainland.
Since 2021, India Has Seen More Annual AI App Downloads Than
China
However, when it comes to the growth rate (3-year CAGR), India (168%) has the lowest rate compared to the USA (178%) and China (368%)
Source: Sensor Tower, Inc42 Analysis Note:
Source: Inc42
Note: This is not an exhaustive list.
India's AI Startup Landscape
Source: Inc42
Note: This is not an exhaustive list. General purpose LLM and AI hardware startups are not included in this.
India's Native AI Startups Raked
In Over $1.5 Bn
Venture capital funding for Indian AI startups has surged over 5.4x in the past five years, signalling sustained investor confidence and growing momentum in the sector
Source: Inc42
Note: This analysis is based on 180+ funding deals tracked in the Inc42 database between
and Q1 2025
India’s Biggest AI Startup Deals Of 2024
Funding Stage Round Size Name Notable Investors Sector
AI Application (Vertical)
AI Infrastructure
AI Application (Horizontal)
AI Infrastructure
Late Stage
Growth Stage
Growth Stage Growth Stage
AI Application (Horizontal)
AI Application (Horizontal)
AI Application (Horizontal)
AI Application (Horizontal)
AI Application (Horizontal)
AI Application (Horizontal)
Source: Inc42
Note: This list is based on funding deals tracked in the Inc42 database in 2024
Lightspeed Venture Partners, 360 ONE Asset Management, Kae Capital, Novo Holdings
Z47
Smith Point Capital, Nexus Venture Partners, Battery Ventures, Servicenow Ventures
NTT Venture Capital, Z47, Nexus Venture Partners, Menlo Park Capital
Accel, Elevation Capital, Y Combinator
Accel, General Catalyst, Meraki Labs
Canaan Partners, Kleiner Perkins, Peak XV Partners, WIND Ventures
ICONIQ Growth, Elevation Capital
Khosla Ventures, Y Combinator, Gaingels, SignalRank
Z47, Blume Ventures, Neon Fund, Mars Shot Ventures
Investors Bet Big On AI Applications
Immediate Value Focus: Indian investors overwhelmingly prioritise immediate commercial applications ($1.2 Bn) over foundational AI research. While this has accelerated short-term monetisation and visible product outcomes, it raises a critical question for the ecosystem: Is India trading long-term technological sovereignty for short-term traction? It must be assessed whether this imbalance could leave India overly reliant on foreign AI infrastructure, constrained in IP ownership, and exposed to geopolitical and supply chain risks in the years ahead.
Infrastructure
Underinvestment: With only $105 Mn flowing to AI development infrastructure, India risks becoming dependent on foreign cloud services. Early investments in homegrown AI infrastructure could yield outsized returns.
R&D Deficit: The meagre $120 Mn investment in foundation model reflects India's critical academic industry research gap. Without stronger indigenous R&D between IITs and corporate labs, India risks permanent dependence on Western models ill-suited to linguistic diversity. This threatens both commercial opportunities and strategic sovereignty in critical sectors.
Source: Inc42
Note: This analysis is based on 180+ funding deals tracked in the Inc42 database between 2020 and Q1 2025. For this analysis, we have categorised Ola Krutrim under "Development & Cloud Infrastructure.
Just 2 In 10 AI Startups In India Are Building Core Infrastructure
Native AI
Startups
Eight out of ten funded AI startups in India are focused on building application-layer solutions — such as productivity tools, consumer-facing platforms, and enterprise SaaS products, rather than core infrastructure. In contrast, deeptech efforts like AI semiconductors, model training frameworks, and foundational model development remain limited, accounting for less than 20% of the ecosystem. This skew highlights India’s current positioning as a user-level innovator in AI, rather than a foundational technology builder — a gap that could have long-term strategic implications amid rising global AI protectionism.
Source: Inc42
Note: This analysis is based on a sample set of 160 funded Indian AI startups tracked by Inc42 Datalabs from 2020 to Q1 2025.
Bengaluru Leads India’s AI Funding With Over
50% Share
The city’s mature startup environment gives founders a clear advantage with better access to funding, top talent, and early traction
Source: Inc42
Note:This analysis is based on 180+ funding deals tracked in the Inc42 database between 2020 and Q1 2025
Bengaluru Mumbai
Bengaluru Is The AI Startup Hotspot Of India
The city's startup ecosystem accounts for over fifty percent of both the funding amount and the number of deals invested in Indian AI startups
Source: Inc42
Note: This analysis is based on a sample of
Notable Mergers & Acquisitions In Indian AI Startup
Ecosystem
Startup Name
Offering
Text-to-video tools for creating videos from text and dubbing using generative AI technology.
Funding Stage Acquisition Year Acquired By
Growth Stage 2023
A platform for financial insights from transactions, engaging customers in real-time with tailored experiences.
A generative AI solution for text-to-speech (TTS) and voice cloning, with tone, pace, and sentiment adjustments across multiple languages.
An AI-driven emissions intelligence platform for asset intensive manufacturers to monitor, trace, and reduce emissions.
Seed Stage 2023
Seed Stage 2025
Seed Stage 2024
The company uses technologies such as AI, computer vision, and sensor fusion to deliver analytics and deeptech solutions for the mobility industry.
Undisclosed 2019
Source: Inc42
Note: This is not an exhaustive list of all mergers and acquisitions.
Notable Mergers & Acquisitions In Indian AI Startup
Ecosystem
Provides AI-based personalised recommendations to ecommerce businesses to enhance their conversion rates.
An AI-powered connected car technology providing plug-and-play solution for detailed insights into a car's health and performance.
A conversational AI startup providing interactive chatbots and live agent support.
A natural language processing (NLP) solution for human-like customer assistance and ecommerce recommendations.
Source: Inc42
Prescinto's AI platform gathers data from solar plants to provide actionable performance insights.
Note: This is not an exhaustive list of all mergers and acquisitions.
Seed Stage 2019
Undisclosed 2022
Seed Stage 2021
Undisclosed 2019
Growth Stage 2024
Key Insights From India’s AI Startup Landscape
Lacking AI Infrastructure Funding: Investments in native AI startups focusing on infrastructure solutions like foundation models, development platforms, and semiconductors have been underwhelming. This is clear as eight out of ten funded AI startups in India are developing application layer solutions. Additionally, over 80% of the total capital invested since 2020 has gone into application layer startups. Discussions with various AI founders in India highlight a potential market gap for Indian startups in the AI infrastructure sector, assuming they can create solutions that fulfill industry needs, despite the existing stronghold of international companies.
Dependency On International Clients: The AI startup ecosystem in India, mainly application layer startups, relies on international markets like regular SaaS startups. Their reliance on international markets mirrors that of regular SaaS startups. However, revenue from domestic clients is growing. According to Adhik Joshi, founder of Models Lab, only 5% of their revenue now comes from Indian businesses rest is all from international markets, up from about 1% earlier.
Startups Choose Hybrid AI Adoption: While most businesses worldwide are enthusiastic about AI's positive impact, implementation strategies remain uncertain. In the case of Indian founders, they have predominantly opted for a hybrid approach, combining third-party software purchases with in-house solutions. According to Inc42's latest founder survey, one-third of founders prefer this hybrid method over alternatives.
AI-Led Increase In IT Spending: According to Inc42's 2024 founders survey, 72% of Indian startups plan to boost IT spending in FY26, coupled with a strong appetite for AI adoption. This suggests significant growth in AI infrastructure and application expenditure. Gartner predicts that by 2025, over 50% of AI-enabled application software will command premium pricing, reflecting organisations' increasing willingness to invest in advanced AI technologies.
Source: Inc42
India’s Most Active AI Startup Investors
Investor Name
Anyway AI, Whitetable AI, Datavio, GOCODEO
Blend, Fego AI, Nektar AI
Finbots.AI, Nanonets, Nurix AI, Spyne
Segmind, Magic Studio, Suitable AI
UnScript AI, VisualDub, Orbo AI
Source: Inc42
figr.design, tradomate.one, plotch.ai, segwise.ai
Enkrypt AI, RagaAI, daxa.ai, brieflyai.com
Leena AI, Nektar AI, Obviously AI
Autodraft AI, Honestly AI, RapidClaims AI
Agara, Kusho, Segwise, SiftHub
Note: This is neither a ranking nor a comprehensive list of all investors supporting Indian AI startups. The organisations are listed in alphabetical order. The deal count are sourced from the Inc42’s List Of Most Active
India’s Most Active AI Startup Investors
Drivetrain AI, Factors AI, MURF AI
Myelin Foundry, Expertia.AI, SlangLabs
Beatoven AI, Vidyo AI, Expertia AI
Dubpro AI, Predis AI
Limechat, VisualDub, ScanO
we360 AI, Param AI
Source: Inc42
Unstudio, NeuroPixel.AI
OnFinance AI, AuraML, Skit Ai, Uniphore
kosha AI, axai.ai, Clodura.AI , vphrase.com
Llumo AI, Maino.ai,
Note: This is neither a ranking nor a comprehensive list of all investors supporting Indian AI startups. The organisations are listed in alphabetical order. The deal count are sourced from the Inc42’s List Of Most Active GenAI Investors 2024 and Inc42 proprietary database.
India’s Most Active AI Startup Investors
Gnani
Subtl AI, CureSkin
Pintel AI, Beatoven AI, Expertrons
Hyperbots, Convin, Haptik
Eightfold AI, Qure AI, NextBillionAI
Source: Inc42
SiftHub, Peoplebox.ai
Neysa, Observe AI, Neuron7 AI
Qure AI, InVideo, Samya AI
Rezolve AI, Spyne AI
Note: This is neither a ranking nor a comprehensive list of all investors supporting Indian AI startups. The organisations are listed in alphabetical order. The deal count are sourced from the Inc42’s List Of Most Active GenAI Investors 2024 and Inc42 proprietary database.
India’s Most Active AI Startup Investors
Kombai, LimeChat, unSCRIPT AI
Miko, Detect Technologies
Vodex AI, Boxx AI
CoRover, plotch.ai, Dubpro.ai
Leena AI, Nanonets, Observe.AI, RedBrick AI
GreyLabs AI, SiftHub, Krutrim
Source: Inc42
Note: This is neither a ranking nor a comprehensive list of all investors supporting Indian AI startups. The organisations are listed in alphabetical order. The deal count are sourced from the Inc42’s List Of Most Active GenAI Investors 2024 and Inc42 proprietary database.
Women In Tech: Notable Women Led AI Startups
In India
ANUSHA RAMMOHAN MYELIN FOUNDRY
SEGMENT Development & Cloud Infrastructure
TOTAL FUNDING
NOTABLE INVESTORS
$9 Mn
IFC, Stellaris Venture Partners, Endiya Partners, Beyond Next Ventures
ARIDNI SHAH IMMUNITO AI
SEGMENT AI Application
TOTAL FUNDING
ASHWINI ASOKAN VUE AI (MAD STREET DEN)
SEGMENT Development & Cloud Infrastructure
TOTAL FUNDING
$56 Mn
NOTABLE INVESTORS
Source: Inc42
$1 Mn
DEEBA KAZMI FINBOTS AI
SEGMENT AI Application
TOTAL FUNDING
Global Brain Corporation, Peak XV Partners, Alpha Wave Global, Rocketship VC
NOTABLE INVESTORS
Note: This is not an exhaustive list. Founders have been listed in alphabetical order.
$3 Mn+ Accel
Women In Tech: Notable Women Led AI Startups In India
SEGMENT
PRASAD SPYNE AI
TOTAL FUNDING LAINA EMMANUEL BRAINSIGHT AI
Application
$24 Mn
Accel, Upekkha Vertical AI
SEGMENT AI Application
TOTAL FUNDING
SEGMENT
TOTAL FUNDING
Source: Inc42
$6.6 Mn
Entrepreneurs First, IAN Group,
ATLAN
SEGMENT AI Application
TOTAL FUNDING
$200 Mn+
Z47, Blume Ventures, Neon Fund, Mars Shot Ventures
NOTABLE INVESTORS
Note: This is not an exhaustive list. Founders have been listed in alphabetical order.
Insight Partners, Peak XV Partners, Salesforce Ventures, Meritech Capital Partners
DEEPTI
PRUKALPA SANKAR
Women In Tech: Notable Women Led AI Startups
DR RIMJHIM AGRAWAL BRAINSIGHT AI
SEGMENT AI Application
TOTAL FUNDING
$6.6 Mn
NOTABLE INVESTORS
TOTAL FUNDING
Entrepreneurs First, IAN Group, IvyCap Ventures, She Capital, Info Edge
SUPARNA SINGH FRAMMER AI
SEGMENT AI Application
TOTAL FUNDING
NOTABLE INVESTORS
Source: Inc42
$2 Mn Lumikai
SNEHA ROY MURF AI AI Application
$12 Mn
VRUSHALI PRASADE PIXIS AI
SEGMENT AI Application
TOTAL FUNDING
NOTABLE INVESTORS
Note: This is not an exhaustive list. Founders have been listed in alphabetical order.
$209 Mn
General Atlantic, Celesta Capital, SoftBank, Chiratae Ventures, Pi Ventures
Decoding Agentic AI
AI Agents: The Hype, The Tech, And What It All Means
AI Agents: A system driven by AI that can reason, plan, and execute tasks or entire workflows independently, with human oversight at critical points.
The Tech: Agentic AI observes its environment, makes decisions, and takes actions to achieve tasks, like a personal assistant that learns your habits to plan your day. AI agents learn, decide, and act independently based on goals, while non agentic workflow systems just execute instructions.
The Hype: Agent-based systems are the hottest buzzword in AI, dominating venture capitalists’ agendas. According to Inc42’s Q1 2025 investor survey, 53% of Indian startup investors highlighted AI agents as their top 2025 investment focus. Meanwhile, organisational leaders are proactively exploring ways to integrate agentic AI into their operations, viewing it as a transformative tool for efficiency and innovation.
Source: Inc42 Analysis, NVIDIA (Diagram), Secondary Sources
AI Agents To Redefine Workflow Automation In 2025
In 2025, Agentic AI is the standout trend in the evolution of AI technology. This view was also echoed by NVIDIA CEO Jensen Huang at GTC 2025.
User Instructions
Task Analysis & Planning
Execute Actions (APIs/tools) Outcome/ Response
Answers from world knowledge RAG Chatbots search through organisation's documents and knowledge bases to deliver accurate company-specific answers
Al Workflows help you reimagine business processes through LLMs and tools are or chestrated through predefined paths.
Good for reimagine routine but predictable tasks.
Al Agents automatically analyse problems, plan steps, and execute actions to achieve goals.
Great for computer tasks that need flexibility and smart decision-making
Multi Al Agentic Systems combine specialised Al agents that collaborate to tackle complex problems by sharing information and coordinating their actions.
Ideal for sophisticated workflows requiring diverse expertise and parallel processing capabilities.
Source: Inc42 Analysis, NVIDIA (Diagram), Secondary Sources
Source: Inc42 Analysis, UnifyApps (infographic)
The Human-AI Tango: Three Phases Of Agentic AI Integration In Business
Phase 1
Human with assistant
Every employee has an AI assistant that helps them work better and faster
Understanding The Three Phases
Phase 2
Human-agent teamst
Agents join teams as “digital colleagues,” taking on specific tasks at human direction
The three phases of AI adoption in organisations represent a shift from AI as tools to workforce partners. In Phase 1, AI assistants help employees with daily tasks. Phase 2 sees AI as "digital colleagues" handling specific roles under human guidance. Finally, in Phase 3, humans lead strategically while AI manages most operations independently.
Middle Management Transformation
Phase 3
Human-led, agent-operated
Humans set direction and agents execute business processes and workflows, checking in as needed
Regulatory Readiness:
The biggest impact will be on middle management in Indian organisations. Phase 3 shifts supervisory roles to strategic AI guidance. C-level execs must rethink career paths, focusing on AI oversight and process improvement.
Indian AI adoption faces unique regulatory challenges. As organisations reach Phase 3 with agent-operated processes, C-suite leaders must engage with policymakers to shape AI governance. Early adopters of governance programmes will gain significant advantages in sectors like healthcare and financial services, where regulatory scrutiny is increasing.
Source: Inc42 Analysis, Microsoft Work Trend Index Annual Report 2025
India's Agentic AI Landscape
Agent Development & Orchestration
Horizontal & Vertical Business Application
Source: Inc42
Note: This is not an exhaustive list. The segments featured in the above startup landscape are not mutually exclusive and may have overlapping focus areas
Notable Indian Agentic AI Startups
Atomicwork offers AI powered agents that are designed for enterprise IT teams, are context-aware and analyse multiple data sources in real time.
SiftHub provides an AI sales agent that connects sellers with company knowledge, empowering them to close deals effectively.
AgentX, an upcoming product by the company, provides businesses with a platform to build and deploy AI agents for custom use cases.
LimeChat provides AI agents specialised in enhancing growth marketing campaigns and customer support.
Yellow AI provides businesses with a range of AI agents designed to automate customer support, enhancing efficiency and reducing resolution time.
Growth Stage $39 Mn
Seed Stage $5.5 Mn
Khosla Ventures, Z47, Blume Ventures, Peak XV, Storm Ventures
Seed Stage $28 Mn
Blume Ventures, Z47, Mars Shot Ventures, Neon Fund
Accel, General Catalyst, Meraki Labs
Seed Stage $5 Mn Pi Ventures
Stellaris Venture Partners, Google For Startups, IFC
Late Stage $102 Mn
Source: Inc42
Note: This is not an exhaustive list. The total funding amount and funding stage are as on April 2025
Lightspeed Venture Partners, Salesforce Ventures, WestBridge Capital, Sapphire Ventures, Titan Capital
Notable Agentic AI Startups In India
Raga AI provides a platform for creating, launching, and troubleshooting AI agents tailored to address specific business needs.
Plocth AI provides a platform for businesses to create, launch, and oversee custom AI agents tailored for various functions including ecommerce, IT & compliance.
Maxim AI offers a platform for evaluating and fine- tuning AI agents, facilitating the quicker deployment of production ready AIsolutions
Gupshup offers a library of pre-built AI agentsdesigned to tackle business challenges like customer support, lead generation, order management, and product discovery.
Source: Inc42
Rezo AI provides conversational AI (text and speech) agents specialising in customer support and sales & marketing.
Seed Stage $5 Mn Pi Ventures, Pravega Ventures, TenOneTen Ventures, Mana Ventures
Seed Stage Undisclosed
Venture Catalysts, Antler, Peak XV Partners
Seed Stage $3 Mn Elevation Capital
Late Stage $484 Mn
Tiger Global Management, Helion Venture Partners, CRV, White Oak Global Advisors
Seed Stage Undisclosed
Note: This is not an exhaustive list. The total funding amount and funding stage are as on April 2025
Modulor Capital, Maruti Suzuki Accelerator, Shastra VC, APPYHIGH
Notable Agentic AI Startups In India
Brief Name
Notable Investors
OnFinance AI provides a specialised agentic AI platform designed for the BFSI sector, aimed at streamlining and simplifying regulatory compliance.
Gnani AI offers conversational agents focused on voice first operations, specialising in customer service and sale & marketing.
Eightfold AI provides an agentic AI platform specialising in simplifying and automating talent acquisition and management for businesses and public sector enterprises.
Onetab AI provides a workplace collaboration and project management platform powered by Agentic AI, specialising in workflow automation for product and tech teams.
UnifyApps provides an agentic AI development and orchestration platform that accelerates the deployment and integration of AI agents into existing business operations.
Seed Stage $1.1 Mn
JioGenNext, IAN Group, Silverneedle Ventures
Growth Stage $4 Mn Info Edge, Samsung Ventures
Late Stage $390 Mn
General Catalyst, Lightspeed Venture Partners, Softbank, Foundation Capital
Seed Stage $3.3 Mn SOSV, Li Ling Fund
Growth Stage $31 Mn
Source: Inc42
Note: This is not an exhaustive list. The total funding amount and funding stage are as on April 2025
ICONIQ Growth, Elevation Capital
Over Half of Indian VCs Are Betting Big On AI Agents In 2025
Question asked: As an investor, which of the following artificial intelligence segments do you believe will offer the best investment opportunities in 2025?
Source: Inc42’s The Pulse Of Tech Investor Survey, Q1 2025
Note: Based on survey of 75 Indian startup investors (Partners & Principals) |The percentages may exceed 100% as respondents were allowed to select multiple option.
Key Insights: Agentic AI Startup Ecosystem In India
High Investor Appetite: In 2025, Indian startup investors are keen on agentic AI. Over 50% of respondents in Inc42’s Q1 2025 survey ranked it as their top investment theme this year.
Big First-Cheque Funding: Given the high return potential of the agentic AI industry, Indian venture capital and angel investors are eager to support startups with significant early-stage investments. This trend is evident from recent investments in startups like Nurix AI ($28 Mn), Atomicwork ($11 Mn), and SiftHub ($5.5 Mn).
Human-in-the-loop Approach: The latest Microsoft workplace trends index shows that in the final phase of agentic AI adoption in Indian businesses, the workflow will be "human-led, agent-operated." This means humans will remain central to decision-making, even with advanced AI integration.
Emphasis On Application Layer: Out of the $1.5 Bn invested in Indian AI startups, $1.2 Bn (82%) went to application layer startups. A similar trend is seen in agentic AI, with more focus on providing pre-built AI agents suited for business application rather than frameworks and orchestration.
Model Context Protocol (MCP): As AI agents become increasingly sophisticated and independent, they still need to integrate with external tools and services to complete practical tasks like email communication, sales outreach, or content publishing. The Model Context Protocol (MCP) facilitates these integrations by providing a standardised way for AI systems to connect with third-party applications. With India's AI startup landscape heavily focused on application layer products, there's likely to be growing demand for MCP-based solutions.
Source: Inc42
AI Talent & Workforce
The State Of AI Talent & Workforce In India
Indian AI Workforce
Key Insights & Statistics
#2 that’s where India ranks globally for AI expertise, with a skills penetration score of 2.51
15 Mn+ software developers are active in India
500-700K engineers graduate every year in India
420K+ AI professionals, second largest in the world
28% share of women in India’s AI talent pool
52% of AI talent pool across all industries have work experience under five years
BFSI non-tech industry in India with highest installed AI talent
Source: Inc42 Analysis, Nasscom, GitHub
India Ranks #2 Globally In AI Skills
According to Stanford’s 2025 AI Index Report, India secured the second spot worldwide for AI skill penetration, signalling its growing AI talent depth
Spain
Indonesia
Australia
Source: Stanford Artificial Index Report 2025, Inc42 Analysis
Note: Data for China was not available
India Leads In AI Skills, But Can’t Hold On To Its Talent
Despite ranking among the top for AI expertise, India is seeing a net outflow of talent, with professionals migrating to the US, Germany, and other global hubs
Source: Stanford Artificial Index Report 2025, Inc42 Analysis
Note: Data for China was not available
Global Workplace AI Adoption: IT & Marketing Departments Take
the Lead
Marketing professionals lead as the top power users of ChatGPT in the workplace
Source: Freshworks, Inc42 Analysis
Note: The insights are drawn from a Freshworks survey of 7K+ full-time employees, conducted from March 9 to April 4, 2024
Total Respondents
33 Mn+ Jobs In India Could Be Transformed By AI In 2030
Sectors
Banking, Financial Services, Insurance (BFSI)
IT/ITeS & Business Process Management Healthcare & Pharmaceuticals
Source: Inc42 Analysis, Secondary Sources
Key Skills In Demand
Python, TensorFlow, MLOps, cloudAI services, process automation, API development, business process optimisation
Predictive modeling, fraud detection algorithms, time series analysis, financial regulations, credit risk modeling, customer segmentation
Medical image processing, clinical data analysis, genomic data processing, EHR management, drug discovery, personalised medicine
Recommendation systems, computer vision, demand forecasting, inventory optimisation, customer journey mapping, omnichannel experience
Computer vision for quality control, predictive maintenance, digital twin development, robotics, production process optimisation
Note: The estimation of impacted jobs is performed using Inc42's proprietary impact calculation model. Further information regarding this methodology is available in the dedicated section of the report.
33 Mn+ Jobs In India Could Be Transformed By AI In 2030
Energy & Utilities (including Renewables)
Source: Inc42 Analysis, Secondary Sources
Adaptive learning algorithms, content recommendation, student performance analytics, NLP for educational content, personalised learning
Network optimisation algorithms, content recommendation engines, speech recognition, 5G and edge computing, customer churn prediction
Document analysis, knowledgemanagement systems, decision support systems, management consulting frameworks, legal document analysis
Energy demand forecasting, grid optimisation algorithms, IoT data analysis, smart grid technologies, renewable energy integration
Note: The estimation of impacted jobs is performed using Inc42's proprietary impact calculation model. Further information regarding this methodology is available in the dedicated section of the report.
India Is The Second Highest Contributor Of AI Projects On GitHub, Indicating High Appetite For AI Among Indian Developers
According to the data from 2023, developers from India are responsible for around 25% of all AI projects on GitHub, which is a significantly larger proportion compared to China's 3% and the EU-UK's 18%. This suggests that the interest in creating applications and tools using artificial intelligence technology is robust among Indian developers, and is comparable to the levels seen in the US and EU. This trend indicates a strong potential for the growth and development of AI technology in India.
Despite having a significant lead in terms of AI projects on GitHub, India is far behind China when it comes to getting patents related to artificial intelligence (AI). Over sixty percent of all patent grants in the field of AI technology belongs to China, followed by USA (21%). In contrast India accounts for a mere 0.2% of all patent grants in the field of AI.
India's dominance in global software development and outsourcing suggests that it has the potential to replicate this success in the application layer of AI technology. However, countries leading in AI infrastructure are taking a restrictive approach in sharing crucial knowledge, making it important for India to focus on developing homegrown AI infrastructure solutions.
Investing in sovereign AI infrastructure will secure India's position in the global AI landscape, support industry growth, and reduce dependence on foreign technology, laying a foundation for long-term economic growth.
Source: Inc42 Analysis, GitHub
Methodology
Since 2015, Inc42 has been the go-to source for identifying Indian startups transforming industries and shaping society.
AI Natives: Indian startups or companies that have been anchored with new age AI technology in their products and services from day one.
AI Adopters: Established Indian tech startups or companiesthat have subsequently integrated GenAI technology into their business offerings, as opposed to those that were founded with GenAI at their core from day one.
Seed Stage: Startup at angel or seed stage
Growth Stage: Startups at Series A and B funding stage
Late Stage: Startups at Series C or above funding stage
Unicorn refers to any digital / tech company valued at or above $1 Bn or have touched this valuation once in their business lifecycle.
A soonicorn is any public or private digital/tech company valued at or above $200 Mn.
Our database enrichments and corrections are done on a regular basis, therefore slight variations in funding-related data compared to previously released reports may exist.
Unless specified otherwise, the market size cited in the report represents the calculated value of the total addressable market (TAM) using a combination of top-down and bottom-up approaches.
Jobs impacted projection model:
Jobs Impacted = Base Employment × (1 + Sector Growth Rate)^6 × AI Adoption Penetration × Transformation
Intensity Factor
Base Employment: Current sector workforce (2024 baseline)
Sector Growth Rate: Annual employment growth rate
AI Adoption Penetration: Percentage of sector significantly adopting AI by 2030
Transformation Intensity Factor: Proportion of jobs undergoing substantial change
Bibliography
https://hai-production.s3.amazonaws.com/files/hai_ai_index_report_2025.pdf
https://nasscom.in/system/files/publication/AI-Adoption-Index-2.0.pdf
https://www.business-standard.com/technology/tech-news/india-s-developer-population-booming-age-of -ai-has-begun-github-ceo-124061101120_1.html
https://www.freshworks.com/assets/resources/Freshworks-2024-Gobal-AI-Workplace-Report.pdf?ehash= e654f099ac1c11ac70dbb226def884747e0b640b3fdb7f9ccfce3466daa33dc9
https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/services/ai/aidea/2025/01/ey-the-aidea-of -india-2025-how-much-productivity-can-genai-unlock-in-india.pdf
https://www.statista.com/statistics/1228433/data-centers-worldwide-by-country/
https://www.gartner.com/en/newsroom/press-releases/2022-11-14-india-it-spending-forecast-2023
https://www.gartner.com/en/newsroom/press-releases/2025-01-21-gartner-forecasts-worldwide-itspending-to-grow-9-point-8-percent-in-2025
https://www.blackrock.com/us/individual/insights/expert-take-on-ai-and-technology-stocks
https://sensortower.com/state-of-mobile-2025
https://epoch.ai/blog
Inc42 is India’s largest tech media & information platform on a mission to build & serve India’s tech, startup & internet economy.
From breaking the latest news to discovering the hottest startups, from spotting upcoming trends to simplifying complex concepts, we cover everything tech in India’s internet economy.
Born in January 2015, Inc42 has become the leading source for news & analysis on India’s rapidly growing tech, startup & internet economy. Inc42, with over 50,000+ published stories, 100+ research reports, 120+ conferences & events & having featured 1000s of entrepreneurs, now reaches over 25 Mn+ tech leaders & professionals every month. Contact: editor@inc42.com www.inc42.com
CREDITS
SANDEEP SINGH ANALYST
SARFAS EK
ANUSHKA SHARMA DESIGNER
ADDRESS
Inc42 Media, 59/16, 4th Floor, Jujhar Tower, RD Marg, Kalkaji, New Delhi, Delhi 110019
DISCLAIMER
The data and insights presented in this research report have been compiled from publicly available information proprietary databases, company filings, and verified third-party sources. We also partner with external data providers for select analyses and trend reporting. While every effort has been made to ensure the accuracy and currency of the information, Ideope Media Pvt. Ltd. (the parent company of Inc42 Media and Inc42 Datalabs) does not guarantee its completeness, accuracy, or reliability.
Users are strongly advised to independently verify any information before relying on it for personal, professional, investment, or business decisions. Inc42 Datalabs shall not be held liable for any loss, damage, or consequences arising from the use of any information contained in this report.
If you identify any discrepancies or errors, please reach out to us at editor@inc42.com. We will make reasonable efforts to validate and update the content where necessary.
All information is published in good faith based on data available at the time of publication, without any independent audit or verification. Descriptive references to third-party products, services, trademarks, or organisations do not imply endorsement or association by Ideope Media Pvt. Ltd., nor do we assume responsibility for the accuracy of such third-party content.
This report is for informational purposes only and should not be construed as professional advice. Users are solely responsible for assessing the relevance, accuracy, and applicability of the information presented. Read the complete disclaimer here.