Summary:

India has achieved tremendous growth in the global generative artificial intelligence (GenAI) field, ranking sixth among GenAI startup ecosystems. According to NASSCOM, GenAI funding surged sixfold in the second quarter of FY25, rising from $8 million (Rs. 67 crore) to $51 million (Rs. 430 crore). This surge included 20 investment rounds, with 90% of the funds directed toward three startups: Nurix AI, Dashtoon, and Mihup. Early-stage investments accounted for 77% of all rounds.

The report highlights a shift in India's GenAI market, focusing on applications that enhance productivity. Technology providers are prioritizing the translation of proofs of concept (PoCs) into production-ready solutions, evidenced by a 25% increase in collaborations in Q2 FY25. Notable collaborations include Accenture-Unilever and Genpact-Volkswagen Financial Services. IT service firms such as Accenture and TCS reported strong bookings, with Accenture securing US$ 3 billion. Sangeeta Gupta of NASSCOM emphasizes that innovation is key to future success.

Source: IBEF

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