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Gen Ai Report - v5
Gen Ai Report - v5
Gen Ai Report - v5
02 INDIA’S STARTUP
ECONOMY 08 LIST OF 30 ACTIVE GENERATIVE
AI STARTUPS IN INDIA
04 WHAT IS
GENERATIVE AI 10 GENERATIVE AI APPLICATIONS
IN INDIA
05 ARTIFICIAL INNOVATION
LIFECYCLE 11 KEY CHALLENGES & GROWTH
DRIVERS IN INDIA
% Growth
2022 2025 (E) (Absolute)
71% 395 Mn
Urban internet
users 360 Mn+ 396 Mn+ 10%
68K+ Indian Startups Launched To Date $143 Bn+ Funding Raised By Indian Startups
111 Indian Startups In The Unicorn Club 5.3K+ Funded Startups In India
9.5K+ Investors Participated In Startup Funding $500 Bn+ Combined Valuation Of Indian Startups
Source: Inc42
Note: Funding data is for the period between 2014 and June 2023
© INC42 MEDIA | NOT FOR DISTRIBUTION / 5
120 YEARS
30 YEARS
20 YEARS
70 YEARS
Machinery, Computer and
Human-cyber-
Water power, Automation
physical systems
Steam power (HCPS)
Source: A research paper by Xiao Chen (Technical University of Denmark), Inc42 Analysis
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What Is Generative AI
Difference Between Generative AI & Predictive AI
What Is GenAI?
GenAI is a form of artificial intelligence
designed to create new content by learning Features Generative AI Predictive AI
from existing data. Leveraging advanced
algorithms, it produces unique outcomes
that mimic human creativity. Creates new content
Predictive
Data
ML Model
Output Label
Learns relationship
Labels between data
and label
GenAI Model
Inputs Output New Content
Learns patterns
on unstructured
Unstructured
content
Content
Labelled data
Generate new
Image Generation
content
Unlabelled data
Other Web app builders Design Voice Synthesis Video editng/ scenes 3D Models/ scenes Biology & Chemistry
Anthropic
AI2
Alibaba,Yandex, etc.
Spam detection Basic Copy writing Longer form Vertical fine tuning Final drafts better Final drafts better
TEXT Translation First drafts Second drats gets good ( scientific than the humon than professional
Basic Q&A papers,etc) average writers
AI Robolox
VIDEO / First attempts at Basic / first draft Second drafts Video games and
3D /
3D/ Video models videos and 3D files movies are
GAMING
personalised dreams
Public Launch of ChatGPT 3 (Nov 2022) Large model availability: First attempts Almost there Ready to prime time
81% GenAI Products From India Have Sector-Agnostic (Horizontal) Use Cases
Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
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Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
© INC42 MEDIA | NOT FOR DISTRIBUTION / 13
GenAI Natives:
Startups that began their
business operations
offering products or
services anchored in
transformer LLM models.
GenAI Adopters:
Startups that initially
launched without
leveraging
transformer-based LLM
models in their products or
services, but later
integrated this technology
into their core or
supplementary offerings.
Source: Inc42
Note: This is not an exhaustive list
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Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
© INC42 MEDIA | NOT FOR DISTRIBUTION / 15
One In Three Indian GenAI Startups Target The Code And Data Segment
Telangana $380K+ 5+
Gujarat $9 Mn+ 3+
Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
© INC42 MEDIA | NOT FOR DISTRIBUTION / 17
Total Capital
Seed Stage Raised
Seed Stage
$50 Mn+
Growth Stage
Growth Stage
$58 Mn+
Late Stage Late Stage
$338 Mn+
0% 25% 50% 75% 100%
2 Spyne, Scalenut
1+ Hexo AI
2 NeuroPixel.AI, REZO
2 DhiWise, hyperagro.ai
Source: Inc42
Note: This is not an exhaustive list | We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
| Only publicly disclosed deals have been considered for this analysis
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Number Of
Notable Funded Startups
Startups Backed
2 hypergro.ai, NeuroPixel.AI
2 Dubverse, Zocket
2 Observe.AI, WorkHack
2 Contlo, Scalenut
Source: Inc42
Note: This is not an exhaustive list | We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
| Only publicly disclosed deals have been considered for this analysis
© INC42 MEDIA | NOT FOR DISTRIBUTION / 20
Text & Chatbots Seed Stage Bengaluru Stellaris Venture Partner, Gemba Capital,
$2.4 Mn
peercheque
Code & Data Seed Stage Bengaluru $0.2 Mn Indian Angel Network
Audio & Video Seed Stage Bengaluru $1.1 Mn Entrepreneur First, Redstart Labs
Image Generation & Editing Seed Stage Bengaluru $3.1 Mn Surge Ventures, Surge, PointOne Capital
Code & Data Growth Stage Surat $10 Mn Accel, India Quotient, Dholakia Ventures
Audio & Video Seed Stage Bengaluru Waveform Ventures, Accel Atoms,
$1.8 Mn
Forward Capital Fund, Force Ventures
Audio & Video Seed Stage Delhi NCR Venture Catalysts, Anicut Angel Fund,
$0.3 Mn
First Cheque
Audio & Video Seed Stage Delhi NCR $0.8 Mn Kalaari Capital
Image Generation & Editing Seed Stage Bengaluru $0.3 Mn Antler India
Audio & Video Seed Stage Bengaluru Dholakia Ventures, Huddle, TDV Partners,
$0.9 Mn
Silverneedle Ventures
Image Generation & Editing Seed Stage Delhi NCR $0.3 Mn Inflection Point Ventures
Foundation Capital,
Code & Data Seed Stage USA/Pune $4.5 Mn Stellaris Venture Partners
Stellaris Venture Partners, Google,
Text & Chatbots Seed Stage Delhi NCR $5 Mn IFC, Pi Ventures
Audio & Video Growth Stage USA/ Bengaluru $12 Mn Matrix Partners, Elevation Capital
Audio & Video Growth Stage USA/ Bengaluru Techstars, Silver Lake, 8VC, Red Ventures,
$12 Mn AV8 Ventures
Text & Chatbots Seed Stage Delhi NCR Titan Capital, Saama Capital, AngelList India,
$3.5 Mn Amit Singhal, First Principles
All In Capital, Paradigm Shift Capital,
Code & Data Seed Stage Bengaluru $1.2 Mn WEH Ventures, 100x Entreprenuer
Text & Chatbots Growth Stage Bengaluru $16 Mn Tenity, Fractal Analytics
Text & Chatbots Seed Stage Bengaluru $0.5 Mn 100X.VC, Inflexor, 2AM VC
Code & Data Seed Stage USA Untapped Capital, Pack Ventures, SeaChange,
$1.5 Mn Array Ventures, Upsparks
Code & Data Seed Stage Bengaluru $1.5 Mn Nexus Venture Partners, Together Fund
Source: Inc42
Note: This representation includes both international and domestic organisations | This is not an exhaustive list of all the players in the ecosystem
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600 552
377
400
GenAI Revenue ($ Bn)
263
187
200
135
99
72
54
0
2023 2024 2025 2026 2027 2028 2029 2030
Supply chain
200
LLM fine-tuning services Fine-tune pre-trained LLMs for domain-specific language and industry applications.
Model-optimization services Optimize Al models to reduce training, storage, and deployment costs.
Custom Al model development Design and train Al models for specific business use-cases and applications.
Al model management & monitoring Manage and monitor Al models with version control, performance tracking, and bias detection.
Al Produced TDaaS (Training Data as a Service) Massive amount of training data is needed for LLMs and Al models - this data may be generated
by existing Al models as a TDaaS product.
Al-powered data labeling Provide high-quality pre-processed and labeled data using Al for training Al models.
LLMaaS (LLM as a Service) platform Offer subscription-based access to LLMs, tools, and technologies.
Al education and training Train and educate businesses on leveraging Altechnologies for their operations.
Al-powered process automation Develop Al-driven solutions for automating routine tasks and processes.
Al model security & compliance Ensure Al models are secure and compliant with industry regulations and ethical guidelines.
Al model consulting Guide businesses on strategizing and identifying impactful Al implementation use-cases.
20
$17 Bn
15
+48% CAGR
Market Size ($ Bn)
10
$1.1 Bn
0
2023 2030
AI Tutor, Customised Learning Materials, Automated Assignment Review, Automated Note Making,
Education Customer Support, Marketing And Sales, No-Code Website/App Development
Personalised Invested Recommendation, Customer Support, Marketing And Advertising, Marketing And
Finance
Sales, Custom Market Performance Report Generation, No-Code Website/App Development
Drug Discovery/ R&D, Customer Support, Lab Test Report Generation, Marketing And Advertising, No-Code
Healthcare
Website/App Development, Personalised Health Recommendation Based On Patients Medical History.
SaaS & Software Development Software Product/Application Testing, No-Code 3rd Party Integration, No-Code Website/App Development,
Customer Support, Marketing And Sales, Custom Client Report Generation
Workflow Automation:
As India aims for a $5 Tn economy by 2030, automation in business operations will play a key role. The adoption of Chatbots in leading Indian startups
and corporations has already disrupted customer support roles, and this trend is likely to continue and expand in areas such as digital marketing, sales,
software development and client servicing.
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