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Generative AI Startup Landscape in India – A 2023 Perspective

June 23, 2023 28076 3 Data Science & AI Community

Generative AI Startup Landscape in India – A 2023 Perspective

As of May 2023, the Indian Generative AI landscape had more than 60 startups dedicated to offering solutions and services to their customers spread across various industry verticals.More than $590 million in funding has already flown into this space, with 2022 being the year with the heaviest funding inflow. This study, Generative AI Startup Landscape in India – A 2023 Perspective, reflects nasscom’s perspective on this evolving space. The study outlines the market composition, funding environment, technological environment, value creation across use cases, and revenue trends/expectations reported by the Gen AI startups in India. Also included are nasscom’s recommendations to various ecosystem players on what they can do to create a favourable environment that facilitates large-scale Generative AI potential unlock and promotes market growth.

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Key Findings:

  • Generative AI is a gradual shift from Artificial Narrow Intelligence towards Artificial General Intelligence
    • Discussion on what Generative AI company leaders and investors think about the landscape today and how it would look like in the future.
    • Understanding the generative AI technology stack, and how this technology is different from ANI and AGI
    • Overview of the generative AI evolution timeline
       
  • Globally, generative AI startups raised more than $2.5 billion in private investments in 2022,which was almost 3% of the overall private investments in AI globally.
    • Overview of the global ecosystem, and valuation trends for Gen AI companies over the past couple of years.
    • Discussion on overall funding flow, and distribution of funding across categories.
       
  • Indian generative AI startups have raised more than $590 million in private investments till date, and around 70% of all funding raised till date came in 2022.
    • Overview of the Indian generative AI landscape with focus on areas where most of the companies in the space are currently present.
    • Capturing the evolution of the Indian generative AI landscape, current funding trends, and outlook for 2023.
    • Key themes around company types, their product development strategies, their position in the product development lifecycle, major use cases addressed by their products, and the preferred technology stack.
    • Analysis of the key hotspots for companies in this space.

 

  • Lack of high-quality training data, patient capital, and compute infrastructure emerged as some of the key challenges being faced by startups in the market
    • Comparison of India’s position in the market with that of two major tech startup hubs in the world.
    • Key challenges faced by startups and nasscom’s recommendations to startups, investors, industry, and governments on what can be done on their part to promote the growth of Indian generative AI startup ecosystem.

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