Indian AI startups funding plunges 91% to $8.2 million in Q2
Funding for AI startups in India stood at $8.2 million in the April-June quarter, declining about 91% sequentially and by 82% year on year, data sourced by ET from market tracking firm Tracxn showed.
This, however, comes on a nearly 110% sequential growth in funding in the previous quarter, and 56% in the quarter ended December 2023.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisitIndian School of BusinessProfessional Certificate in Product ManagementVisitThe data includes equity funding of AI infrastructure and AI-as-a-service tech startups.
“The decline in funding can be primarily attributed to the highly volatile market due to geopolitical tensions (and) rising interest rates, among others… We expect this sector to grow in the near future once market conditions stabilise,” Neha Singh, cofounder of Tracxn, told ET.
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AI startups accounted for only about 0.3% of the overall tech startup funding, which stood at about $3 billion, in the June quarter.
Globally, however, AI startups have been defying the ‘funding winter’ plaguing startups post pandemic.
In the US, for instance, AI startups received $27 billion in funding in April-June, accounting for nearly half of all startup funding in the country during that period, the New York Times reported, citing Pitchbook data. AI startups for
