3 Min Read
India has cemented its place in the global generative AI (GenAI) scene, now ranking sixth among major economies in its share of GenAI startups. The country's Gen AI sector has grown fast, with big steps forward in new ideas, money coming in, and people learning new skills.
Startups like Nurix AI, Dashtoon, and Mihup have become leaders in changing how we manage work, make digital comics, and analyse conversations in call centres.
Nasscom's new Generative AI Tracker shows important trends in the tech industry for Q2FY2025 pointing out a big 6x quarter-on-quarter (QoQ) jump in investments. B2B platforms and productivity solutions are behind this growth, with total funding going up 3.4x compared to last year and a high of 20 funding rounds showing a big comeback after a slow Q1.
Money flows back led by apps and services
Tech providers continue to expand GenAI activities
Change to advanced AI training and themed skill development
Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom, said, "The generative AI scene is changing fast. It's shaking up tech service providers and opening new doors. Companies are thinking hard about their plans and putting more money into tech and people. Q2FY2025 was a big deal for India's GenAI world. Money started going to tools that boost how much work gets done. To win in the future, you'll need smart new ideas good results from test runs, and to learn from what happens along the way."
As GenAI keeps growing, India's focus on new ideas and teamwork sets it up to lead the world market.
Startups like Nurix AI, Dashtoon, and Mihup have become leaders in changing how we manage work, make digital comics, and analyse conversations in call centres.
Nasscom's new Generative AI Tracker shows important trends in the tech industry for Q2FY2025 pointing out a big 6x quarter-on-quarter (QoQ) jump in investments. B2B platforms and productivity solutions are behind this growth, with total funding going up 3.4x compared to last year and a high of 20 funding rounds showing a big comeback after a slow Q1.
Main points from the report
Money flows back led by apps and services
- Total funding went up 3.4x compared to last year getting a big boost from money put into enterprise apps and agentic AI.
- Funding rounds grew three times in the second quarter of FY25, with early-stage investments making up 77% of all rounds, including angel and seed funding.
Tech providers continue to expand GenAI activities
- Tech providers are moving from building use-case portfolios to turning active proofs of concept (PoCs) into solutions ready for production.
- Partnerships increased by 25% QoQ, focusing on improving products, joint market strategies, and government-led training programmes.
Change to advanced AI training and themed skill development
- Talent strategies are changing from basic AI knowledge to advanced and themed skill development, stressing platform integration and AI agent abilities.
- The Indian GenAI ecosystem is growing up. It's moving from testing ideas to building solutions that work at scale. More money and higher profits are pushing this change.
Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom, said, "The generative AI scene is changing fast. It's shaking up tech service providers and opening new doors. Companies are thinking hard about their plans and putting more money into tech and people. Q2FY2025 was a big deal for India's GenAI world. Money started going to tools that boost how much work gets done. To win in the future, you'll need smart new ideas good results from test runs, and to learn from what happens along the way."
As GenAI keeps growing, India's focus on new ideas and teamwork sets it up to lead the world market.
(Edited by : Shoma Bhattacharjee)
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