AI Startup Funding Report – India – 2025

India’s AI startup ecosystem witnessed a notable rise in funding for AI startups in 2024, with total funding reaching around USD 780.5 million, an increase of around  39.9% from the previous year. This trend highlights an increase in the investor confidence in AI-driven solutions, propelled by rapid digital advancements across key industries such as BFSI, healthcare, telecommunications, and automotive.

Late-stage funding also witnessed a significant surge in the funding, as the funding reached USD 554 million, as investors shifted focus toward scalable, high-impact AI enterprises. Conversely, early-stage funding experienced a substantial 37% reduction, highlighting a shift towards an investment strategy that prioritizes startups with significant market viability.

Some of the AI startups that received substantial investments in 2024 included Kore.ai (USD 150 million), Atlan (USD 105 million), and Krutrim (USD 50 million), among others. Bengaluru maintained its position as the leading AI hub, securing a substantial funding in 2024, while Hyderabad’s AI ecosystem experienced substantial growth, driven by government initiatives such as the Telangana AI Mission (T-AIM).

The funding landscape for AI in India is expected to continue growing, bolstered by initiatives including the India AI Mission, which is anticipated to further establish the country as a prominent global hub for AI innovation.

Key Highlights

• India is currently home to over 300 AI startups
• AI startups in India raised a funding of around USD 780.5 million, which is a rise of 39.9% compared to the previous year
• Kore.ai raised USD 150 million in funding, led by FTV Capital with participation from NVIDIA and other investors
• AI startups such as Kore.AI, Krutrim AI, Atlan, EMA, Neysa Networks, are some of the startups that have all received substantial funding in 2024
• 14.85% of startups focus on AI Platforms & SaaS Solutions, attracting significant funding due to their scalability and cross-industry applications in automation, analytics, and business operations
• Bengaluru-based AI startups have received substantial funding of the total funds invested in AI startups in 2024 due to the presence of several established players in the city
• Light Speed Ventures, Matrix Partners, Pi Ventures are some of the major investors, that have invested in the Indian AI startups in 2024
• Investors are focusing on sector-specific AI applications, with significant funding for startups like Qure.ai (healthcare) and AgNext (agriculture), reflecting demand for targeted AI solutions