India’s AI Revolution: The Biggest Startups Leading the Charge

India, while far from the tech epicenter of San Francisco, boasts a significant pool of engineering talent. This pool is increasingly feeding into a burgeoning ecosystem of AI startups. Much like the early days of SaaS in India, the AI startup scene is characterized by constrained funding compared to the vast amounts raised by U.S. and European counterparts. However, there are clear signs of growth, particularly in generative AI, where venture capital is beginning to flow into home-grown talent addressing unique local challenges and bringing new perspectives to global problems.

The Rising Stars of Indian AI Startups

Indian startups are making strides in integrating local language support into their AI models, catering to the diverse linguistic needs of Indian consumers. Notable examples like Pepper Content and Pocket FM are leveraging AI to expand their reach beyond India, aiming to penetrate the U.S. market. Despite the promising developments, securing funding remains a challenge. According to Tracxn data, funding for Indian AI startups plummeted by nearly 80% in 2023, amounting to $113.4 million compared to $554.7 million in 2022. In stark contrast, U.S. AI startups saw a funding increase of 211%, reaching $16.2 billion last year.

However, industry leaders like Dev Khare of Lightspeed Venture Partners India see significant opportunities, particularly in consumer applications such as content creation in Indic languages, virtual influencers, and AI-driven short videos and games. Khare emphasizes the need for a forward-thinking approach, building for markets that do not yet exist but are anticipated to emerge in the future.

Major Players in the Indian AI Landscape

Here are some of the most notable Indian AI startups that have successfully raised significant funds:

1. Krutrim
   • Founder: Bhavish Aggarwal
   • Funding Raised: $50 million
   • Key Investors: Matrix Partners India
   • Overview: As India’s first unicorn AI startup, Krutrim is developing a large language model (LLM) in Indian languages and English. Despite initial backlash over its AI chatbot’s public beta launch, the startup continues to improve its AI model through regular updates.
2. Sarvam AI
   • Founders: Vivek Raghavan and Pratyush Kumar
   • Funding Raised: $41 million
   • Key Investors: Lightspeed Venture Partners, Peak XV Partners, and Khosla Ventures
   • Overview: Sarvam AI focuses on LLMs for Indian languages, offering generative AI solutions, including a platform for developing GenAI apps and contributing to open-source models. It recently partnered with Microsoft to launch voice-based AI tools.
3. Mad Street Den
   • Founders: Ashwini Asokan and Anand Chandrasekaran
   • Funding Raised: $67 million
   • Key Investors: Avatar Growth Capital, Peak XV Partners, and Alpha Wave Global
   • Overview: Specializing in computer vision, Mad Street Den provides AI solutions across various sectors, from retail to healthcare. The startup aims to make AI accessible globally.
4. Wysa
   • Founders: Jo Aggarwal and Ramakant Vempati
   • Funding Raised: $25 million
   • Key Investors: HealthQuad, W Health, British International Investment, and Google Assistant Fund
   • Overview: Wysa offers an AI-driven therapist chatbot used by over 6.5 million people worldwide. It provides mental health support, managed by professionals, and has a global presence.
5. Neysa Networks
   • Founders: Sharad Sanghi and Anindya Das
   • Funding Raised: $20 million
   • Key Investors: Matrix Partners India, Nexus Venture Partners, and NTTVC
   • Overview: Neysa Networks delivers AI and machine learning platforms for businesses, focusing on AI project scaling and security.

Emerging Indian AI Startups to Watch

Several emerging startups are making waves in the Indian AI scene:

1. Upliance AI
   • Founders: Mahek Mody and Mohit Sharma
   • Funding Raised: $5.5 million
   • Key Investors: Khosla Ventures and Draper Associates
   • Overview: Upliance AI integrates AI with home appliances, enabling users to cook a variety of new dishes.
2. Scribble Data
   • Founders: Venkata Pingali and Indrayudh Ghoshal
   • Funding Raised: $2.3 million
   • Key Investor: Blume Ventures
   • Overview: Scribble Data provides AI assistants for insurers, enhancing their backend business operations.
3. Expertia AI
   • Founders: Kanishk Shukla and Akshay Gugnani
   • Funding Raised: $1.3 million
   • Key Investors: Chiratae Ventures, Endiya Partners, and Entrepreneur First
   • Overview: Expertia AI automates recruitment processes, significantly reducing hiring times.
4. OnFinance
   • Founders: Anuj Srivastava and Priyesh Srivastava
   • Funding Raised: $1.1 million
   • Key Investors: Silverneedle Ventures, Indian Angel Network, and LetsVenture
   • Overview: OnFinance offers AI co-pilots for banks and wealth management firms, aiding in equity research and compliance.
5. Helium
   • Founders: Shray Arora and Sidharth Sahni
   • Funding Raised: $550,000
   • Key Investor: Merak Ventures
   • Overview: Helium helps e-commerce brands with AI-driven, headless storefronts.
6. Soket Labs
   • Founder: Abhishek Upperwal
   • Funding Raised: $140,000
   • Overview: Soket Labs develops open-source multilingual LLMs and aims to raise significant seed funding soon.
7. Kissan AI
   • Founder: Pratik Desai
   • Overview: Kissan AI uses its GenAI platform to serve the agriculture sector, providing domain-specific AI solutions.
8. Shorthills AI
   • Founders: Pawan Prabhat and Paramdeep Singh
   • Overview: Shorthills AI builds custom AI tools for enterprises, serving clients in both the U.S. and India.

Conclusion

India’s AI startup ecosystem is on the rise, driven by a combination of local talent and global aspirations. While funding remains a challenge, the innovation and determination of Indian entrepreneurs are paving the way for a promising future. As more investors recognise the potential of these startups, the landscape is poised for significant growth, contributing to the global AI narrative. Hence founders in India should Embrace these once in a century change