The AI Revolution in India: A David vs. Goliath Story
India is not a hub for AI startups, but that’s about to change. With a growing pool of engineering talent and a massive untapped market, India is poised to disrupt the global AI landscape. In this provocative article, we’ll explore the challenges and opportunities faced by Indian AI startups, and why they’re worth keeping an eye on.
The Funding Gap
Funding is a major obstacle for Indian AI startups. In 2023, funding for AI startups in India dropped a whopping 80% to $113.4 million, compared to $554.7 million in 2022. In contrast, AI startup funding in the U.S. grew by 211% to $16.2 billion last year. This massive funding gap has forced many Indian startups to rely on bootstrapping, angel investors, and family funding.
The Rise of Indian AI Startups
Despite these challenges, Indian AI startups are making a name for themselves. One of the most notable examples is Krutrim, founded by Ola founder Bhavish Aggarwal, which has raised $50 million and is valued at $1 billion. Another standout is Sarvam AI, which has raised $41 million and is working on large language models based on Indian languages.
Emerging Startups to Watch
Here are some emerging Indian AI startups that are worth keeping an eye on:
- Upliance AI: This startup brings AI to home appliances, allowing users to cook over 500 new dishes at home.
- Scribble Data: This startup offers domain-specific AI assistants to large insurers, helping them scale their back-end business capacity.
- Expertia AI: This startup helps businesses automate their recruitments using AI, reducing hiring time to 24 hours.
- OnFinance: This startup helps banks and wealth management companies with its AI co-pilots, working in areas ranging from equity research to compliance to wealth advisory.
The Future of AI in India
The future of AI in India looks bright, but it won’t be easy. Indian AI startups will need to continue to innovate and adapt to the changing landscape, while also navigating the challenges of funding, talent acquisition, and competition from established players. However, with the right support and resources, Indian AI startups can make a significant impact on the global AI scene.
Conclusion
India may not be the first place that comes to mind when thinking of AI, but it’s an emerging hub that’s worth keeping an eye on. With its massive pool of engineering talent, growing market, and innovative startups, India is poised to make a significant impact on the global AI landscape. As the David to the Goliaths of the West, Indian AI startups are ready to disrupt the status quo and change the game.
