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GenAI in India: Key Signals from Nasscom’s Generative AI Tracker:  H2FY25
GenAI in India: Key Signals from Nasscom’s Generative AI Tracker: H2FY25

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With the rapid pace of innovation across the world, it is evident that you may listen to wave of release announcements by top tech companies every other day. If you are overwhelmed and are not able to keep up with what is happening in Generative AI. This is absolutely normal. That’s where we thought of tracking the generative AI trends. Nasscom has released the third edition of Generative AI tracker that captures the insights from H2FY2025.

So, what are the latest market trends in Generative AI that you should be aware of?

Let’s go through these trends present in GenAI Tracker – H2FY2025.

  1. Increased GenAI funding in H2FY2025 in India:

3X rise in GenAI funding: Indian Generative AI Startup funding increased from 59 Mn $ in H1 to 176 Mn $ in H2FY2025. During the same time the global GenAI investments also saw a rise of 3.7X in H2FY2025 over H1. Although, 75% of this investment was secured by LLM makers we saw a cross-stack investments in India. We observed investments in cloud and platform as a service and applications layer.

Vertical AI applications such as spot draft were able to raise 60 Mn+ funding in H2FY2025 on account of strong revenue surge of ~170% in 2024. Similarly, BrainsightAI which is healthcare-based solution of brain mapping through image processing and clinical prognosis with GenAI raised over $ 6 Mn in two rounds in H2FY2025. It is planning to expand its market in tier 2 cities.

  1. Rise in Big Ticket deals:

2X rise in the number of $150 Mn+ funding rounds globally. However, India is yet to see traction in funding above 50 Mn $. Other than above mentioned Spotdraft, four startups named Spyne, Neysa, AtomicWorks, and TrueFoundry – secured above $10 Mn funding in H2FY25. On the global front, startups focussed on enterprise applications in focused verticals, multimodal LLMs, and workflow automation agents were able to raise bigger ticket size funding. The below table illustrates several deals above 150 Mn $ in H2FY2025

 

Indian Tech Industry GenAI activity intensity: -

Resilient growth seen in H2FY25. It was 31% growth in the number of GenAI activity in tech industries in India. More than 60% of the activity was in partnerships and 25% of them were new launches. Tech services companies are deepening their partnerships on the basis of domain-oriented partnerships with their unique GenAI solutions. Other important aspects of their partnerships have been with cloud providers, enterprises and startups. For example, LTIM collaborated with Thomas cook to co-create India’s first multi-modal, multi-lingual, agentic voice-enabled, GenAI advisor along with Voicing.ai and Fairfax digital services.

Agentic AI solutions are also rapidly being offered by tech service providers, and we have shared details of some of these offerings in the report. It is evident from these trends that the industry is moving fast. The report covers illustrative details of tech service provider activities in partnerships, new launches (COE or GenAI platform launches) as well as workforce skilling examples.

Last year, we published India’s GenAI startup landscape covering almost every aspect of landscape. We are coming up with next edition of GenAI Startup landscape report. Watch out this space for further details.


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Madhumay
Deputy Manager - Research

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