India’s Generative AI (GenAI) ecosystem is experiencing a boom as the number of startups is tripling to more than 240 in one year. It is an explosive growth and reflects increasing relevance of the country in the global AI landscape. Bengaluru is leading the charge by 43% space. The cities which closely followed are Ahmedabad, Lucknow, Surat and Kolkata. Indian cities are now rapidly emerging as innovation hubs and India is positioning itself as a major player in the GenAI space.
The growth is not just about numbers. It reveals the potential of India’s tech ecosystem. It is about adopting cutting-edge technologies and also about driving innovation across multiple industries. More than $750 million has been funneled into startups since 2023 and this highlights the growing confidence that investors have in India’s AI capabilities.
The capital influx is encouraging and revenue generation truly stands out. 75% of GenAI startups were already generating revenue by mid-2024. The figure was just 22% in the previous year. The shift marks a crucial turning point.
Sangeeta Gupta, Senior VP and Chief Strategy Officer at Nasscom, emphasized the importance of channeling funding towards high-potential GenAI startups. India’s ambition to lead on the global AI stage is not just a goal, but it is also a rapidly approaching reality.
Startups are blending both closed and open-source frameworks to offer more adaptable solutions. The flexibility is fueling advancements in core infrastructure and also in AI-driven applications as well as services. 70% of startups are providing industry-specific solutions across sectors like IT, retail, healthcare and BFSI.