India Solidifies Itself as a Global Leader in GenAI Startups India has demonstrated remarkable growth in innovation, funding, and talent development
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India has solidified its position as a key player in the global Generative AI (GenAI) startups ecosystem, ranking sixth among major economies of the world, according to Nasscom's Generative AI Tracker for Q2FY2025.
The country has demonstrated remarkable growth in innovation, funding, and talent development, with GenAI investments witnessing a sixfold quarter-on-quarter (q-o-q) surge to approximately USD 51 million.
This funding growth, primarily driven by business-to-business (B2B) platforms and productivity solutions, comes after a sluggish first quarter in 2025. The second quarter recorded 20 funding rounds, marking a significant recovery and a 3.4 fold year-on-year increase.
Early-stage investments, including angel and seed funding, accounted for 77 per cent of these rounds, reflecting strong investor confidence in India's GenAI ecosystem.
"The generative AI landscape is evolving rapidly, reshaping technology service providers and unlocking new capabilities. Providers are reevaluating strategies and increasing investments in technology and talent. Future success will rely on strategic innovations, pilot project results, and lessons learned along the way," said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer, Nasscom.
The momentum has been fueled by startups like Nurix AI, Dashtoon, and Mihup, which provides services in workflow management, digital comic creation, and conversational analytics. These companies, among others, are shifting focus from experimental use cases to production-ready applications, driving revenue growth and market adoption. Major tech providers like TCS and Accenture reported GenAI revenue pipelines of USD 1.5 billion and USD 3 billion, respectively.
Additionally, as per the data, strategic partnerships have also played a key role in this growth, increasing by 25 per cent q-o-q. These collaborations focus on product enhancements, joint go-to-market strategies, and R&D initiatives with global universities. Companies have also launched platforms like TCS WisdomNext, Wipro Lab45, and Birlasoft Cogito, integrating multimodal data and AI to cater to industry-specific needs in sectors like banking, insurance, and healthcare.
Talent development has seen a shift from basic AI literacy to advanced and thematic upskilling, equipping India's workforce to meet the demands of a rapidly evolving AI landscape. Government-led skilling programs and private initiatives are fostering expertise in platform integration and Agentic AI capabilities, further strengthening India's position.
Globally, GenAI funding declined to USD 4 billion in Q2FY2025, with 206 funding rounds recorded. While India's growth trajectory has stood out, the global market saw the emergence of four new unicorns—Sakana, Codeium, Harvey, and Magic AI—highlighting the sector's ongoing evolution.
