Report: Indian AI Startup Funding in 2019

AIMResearch presents the impactful insights on the funding of AI startups in India. 

The booming Data Science space in India continues to attract the attention of Venture Capital and Investor funds – thus highlighting the potential of the Indian Data Science market. After attracting close to $530 Mn in investment in 2018, the Indian AI startup market continued to be the focus of leading global funds, receiving $762.5 Mn funding in 2019.

This comprehensive report studies the funding trends of AI and Analytics startups in 2019. It provides wide-ranging insights including the concentration of start-ups by geography, the spread and focus by data science domains, and startups that brought in the largest investments.

The report covers the types of investment firms backing startups – covering details on the stage(s) of funding, number of investors, and lead investor(s) across the big-ticket funding.

The report goes one step further in evaluating the funding received for undisclosed investment rounds– this evaluation was performed on the basis of several distinct criteria including, the valuation and revenues of the specific startup, and the typical investments by carried out by funds in other startups of similar size, capability, and potential.

Read last year’s report, here.


The Indian AI and Analytics startups continued to attract investment in 2019, receiving $762.5 Mn in funding, a 44% increase over the $530 Mn funding received in 2018. This steady growth in funding seems insignificant compared with the 368% growth from 2017 and 2018.

However, this does not signify a slowdown in the startup investment climate. Instead, it indicates a stable and maturing Indian analytics market, in which companies that satisfy a critical market need for Analytics and AI services continue to attract global investments and interest.

The data in our report covers startups that received funds at various stages of development – from early-stage to growth /expansion stage enterprises, and this was reflected by the rounds of funding that varied from Seed to Series A/B/C/D to Late-Stage Private equity.

Mumbai-based Fractal Analytics, which brings Analytics and Artificial Intelligence to various phases of enterprise decision-making, raised the largest amount in funding, receiving $200 Million in a private equity (PE) round from Apax partners, a PE firm. The deal was in exchange for 45% stake in Fractal, with Apax buying out the analytics firm’s investors.

The funding data indicates that funds invested in startups focused not just on general Data Science domains, covering Artificial Intelligence, Machine Learning, and Analytics, but also on niche domains, including Natural Language Processing NLP, Robotics, and Computer Vision. Correspondingly the industries serviced by these startups covered wide spectrum of sectors, including Agriculture, Healthcare & Diagnostics, Financial Services, Supply Chain & Logistics, Retail, and Industrial, among others. This indicates a strengthening of the state of the Data Science startup environment, symbolizing future stable growth and investments.

Read the complete report, here.

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Bhasker Gupta
Bhasker is a techie turned media entrepreneur. Bhasker started AIM in 2012, out of a desire to speak about emerging technologies and their commercial, social and cultural impact. Earlier, Bhasker worked as Vice President at Goldman Sachs. He is a B.Tech from the Indian Institute of Technology, Varanasi and an MBA from the Indian Institute of Management, Lucknow.

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