India’s AI startup ecosystem witnessed a notable rise in funding for AI startups in 2024, with total funding reaching around USD 560.5 million. An increase of around 49.9% from the previous year. This trend highlights an increase in the investor confidence in AI-driven solutions, propelled by rapid digital advancements across key industries such as BFSI, healthcare, telecommunications, and automotive. The funding for AI startups declined in 2022 to 2023 by around 49.4%. The number of funding rounds in 2023 for the AI startups in India were 25. The decline in the funding rounds led to the decline in the funding for the AI startups in India. The funding rounds declined by around 46.1%
Several investors are increasing the investment in the AI startups in the early stage, as investors are focused on providing support to new and innovative AI startups in India. While early stage funding dominates, the late stage funding is likely to secure significant funding, thereby attracting substantial investment.
Read past year’s reports:
Key Highlights
Funding
- Indian AI startups raised a funding of $560 Million across 25 funding rounds— which is a decline of 49.4% compared to the previous year
- Late stage funding made up for 24% of the total number of funding rounds while making 17% of the value raised.
- The decline in the funding for AI startups can be attributed to economic slowdown, market saturation, changes in regulations, etc.
- Bengaluru based AI startups received 29% of the total funds invested in AI startups in 2023.
- Among the notable acquisitions, a blockchain-based data exchange platform provider VeriSmart acquired Dolphin Chat for $4 million
- GoKwik has acquired Tellephant. Through this acquisition, GoKwik has launched its third product KwikChat on Whatsapp, catering to multiple use cases across the e-commerce funnel
