Indian GenAI firms raised $700 million in 3 years, says Nasscom
funding winter’, if investors are bullish on one area, it's generative artificial intelligence (GenAI). Indian GenAI startups have received a cumulative investment of $700 million in the last three years, showed estimates by technology industry apex body Nasscom.
The country now has over 100 genAI startups and the funding received by new genAI ventures such as Hindi LLM maker Sarvam AI, as well as Adobe’s acquisition of Bengaluru-based Rephrase.ai last year are “good validations” of the AI ecosystem booming in India, said Sangeeta Gupta, senior vice president and chief strategy officer, Nasscom.
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These were made across diverse GenAI offerings with the following areas constituting a major share of the pie – text content creation (18%), chatbots and virtual assistants (18%), as well as image and video generation (16%).
“Investments have grown incrementally in 2023, from an AI perspective, because 2022 was the year when startups started realizing the potential of GenAI applications, marked by the debut of ChatGPT,” Gupta told ET.
She added that funding will definitely ramp up in 2024 given the efforts that all the different stakeholders are making.
As per Nasscom estimates, AI startups in general have received private investments totalling $8 billion between 2013-2022, out of which $3.24 billion were drawn in 2022 alone across 1900 AI startups, making the
