TLDR:
– Total funding for Indian AI startups dipped by over 71% in 2023
– Global AI funding increased, with $50 billion raised in 2023
Summary:
Research agency Traxcn data highlighted that the total funding for Indian AI startups dropped significantly in 2023, going from $599 million in 2022 to $168.4 million. Venture capital and private equity funding for Indian AI startups has seen a decrease, with the average deal size dropping from $14.7 million in 2022 to $7.1 million in 2023. Despite this, global AI startups raised $50 billion in 2023, up from $45.8 billion in 2022.
The largest fundraiser in India in 2023 was Krutim, an AI venture founded by Bhavish Aggarwal, which raised $50 million. Another significant fundraiser was Sarvam AI, which raised $41 million to develop efficient large language models.
According to McKinsey, generative AI has the potential to contribute $4.4 trillion annually to the global economy as half of the world’s work is expected to be automated by 2060. Funding in Indian fintech startups, on the other hand, saw a 59% surge quarter-on-quarter in Q1 CY 2024, reaching $551 million.