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AI Startup Funding & Acquisition Report 2024 - India
Funding Frenzy Fiesta

AI Startup Funding & Acquisition Report 2024 - India

Indian AI startups raised a funding of USD 780 Million across — which is an increase of 39.9% compared to the previous year.

AI Startup Funding & Acquisition Report 2024 - India
Yashashree Vivarekar·Published Updated

Key takeaways

  • Indian AI startups raised $560 million in 2023, a decline of 49.4% from the previous year.
  • Early stage funding dominates, while late stage funding accounts for 24% of total rounds.
  • Investor confidence in AI is rising, driven by advancements in key industries like healthcare and BFSI.
  • Bengaluru-based startups captured 29% of the total AI funding in India.
  • Market saturation and economic slowdown contributed to the decline in funding for AI startups.
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India’s AI startup ecosystem witnessed a notable rise in funding for AI startups in 2024, with total funding reaching around USD 560.5 million. An increase of around  49.9% 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. The funding for AI startups declined in 2022 to 2023 by around 49.4%. The number of funding rounds in 2023 for the AI startups in India were 25. The decline in the funding rounds led to the decline in the funding for the AI startups in India. The funding rounds declined by around 46.1%

Several investors are increasing the investment in the AI startups in the early stage, as investors are focused on providing support to new and innovative AI startups in India. While early stage funding dominates, the late stage funding is likely to secure significant funding, thereby attracting substantial investment.

Read past year's reports:

2023

Key Highlights

Funding

  • Indian AI startups raised a funding of $560 Million across 25 funding rounds— which is a decline of 49.4% compared to the previous year
  • Late stage funding made up for 24% of the total number of funding rounds while making 17% of the value raised.
  • The decline in the funding for AI startups can be attributed to economic slowdown, market saturation, changes in regulations, etc.
  • Bengaluru based AI startups received 29% of the total funds invested in AI startups in 2023.
  • Among the notable acquisitions, a blockchain-based data exchange platform provider VeriSmart acquired Dolphin Chat for $4 million
  • GoKwik has acquired Tellephant. Through this acquisition, GoKwik has launched its third product KwikChat on Whatsapp, catering to multiple use cases across the e-commerce funnel

Read the complete report here:

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