The report highlighted that despite being in an early stage, India’s GenAI startups have attracted over $750 million in cumulative funding since 2023. This growth has been driven by the launch of 17 native GenAI language models (a 4.6X increase in GenAI services) and a significant rise in the number of startups offering GenAI assistants, which comprise nearly 80% of the newly added startups over the past year.
Rajesh Nambiar, incoming president of Nasscom, said, “Looking at India’s GDP growth, it has to be led by technology. The tech sector alone is expected to contribute roughly a trillion dollars to GDP.” He added that deep-tech startups are on the rise, with India now home to over 3,600 deep-tech startups, 74% of which focus on AI-driven solutions.
Commenting on revenue generation, the report noted, “75% of startups in the first half of calendar year (CY) 2024 were generating revenue – a significant jump from 22% in the first half of CY2023.” India now ranks 6th globally in the share of GenAI startup ecosystems among major economies.
“Bengaluru remains the leading GenAI startup hub in India, housing 43% of all startups,” the report added. It also pointed to emerging hubs, with cities like Ahmedabad, Lucknow, Surat, and Kolkata growing quickly and now representing 18% of the startup ecosystem.
Sangeeta Gupta, chief strategy officer at Nasscom, emphasized that progress in the GenAI landscape requires a collective effort centered on rapid co-innovation within a supportive ecosystem. “We must prioritise funding for high-potential GenAI startups and focus on attracting and developing top-tier AI talent. Equally crucial is building trust in AI systems by implementing strong responsible AI frameworks. Through collaboration, we can unlock the full potential of GenAI and position India as a global leader in this technological revolution,” she said.
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