India’s technological landscape has undergone a significant shift, with Artificial Intelligence no longer confined to the fringes but rather emerging as a central force driving innovation. The rapid digitalization across sectors such as banking, financial services and insurance (BFSI), telecommunication, healthcare, and automotive has spurred a robust demand for AI-integrated solutions. In response, a wave of startups has emerged, offering AI and related services tailored to address diverse business challenges across industries.
As the adoption of AI continues to soar, so does the funding for enterprises specializing in these services. This trend is illuminated through a comprehensive analysis of year-on-year funding comparisons in India’s AI ecosystem, showcasing the upward trajectory of investment. Notably, the report sheds light on high-value investments in Indian startups and identifies those receiving funding consistently over consecutive years.
Moreover, the report delves into the landscape of acquisition deals involving Indian AI startups over the past three years. Against a backdrop of fewer funding rounds in 2023, larger AI enterprises and startups are increasingly turning to mergers and acquisitions as a strategy for diversification into new domains.
A deep dive into the activities of AI and analytics startups within the Indian ecosystem reveals a concentrated focus on key technologies aimed at tackling diverse industry challenges. Additionally, the report scrutinizes investors’ capital allocation across startups and industries, tracing their funding patterns across different funding series and geographic locations.
AIM Research publishes an annual report to analyze funding received by start-ups based in India and provides details on the AI & analytics landscape.
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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 rounds while making 17% of the value raised.
- The decline in funding for AI startups in India can be attributed to the economic slowdown, market saturation, changes in regulations, etc.
- The overall decline in the startup funding in technologies may also have impacted the funding for AI startups in India in 2023
- Buidler.ai, a composable software platform provider, received the highest funding of $250 Million in 2023 through a Series D round.
- Bengaluru-based AI startups received 29% of the total funds invested in AI startups in 2023.
Acquisition
- 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.
- Lenskart has acquired Tango Eye, an AI-based computer vision startup. With this acquisition, Lenskart plans to use visual AI technology to improve store experience as well as its product experience.
Read the complete report here:
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