India’s Generative AI Startup Ecosystem Flourishes with Over 60 Ventures - News

Nasscom reports that India has over 60 generative AI startups that have raised US$590 million in funding, US$475 million of which was in 2021. Bengaluru’s deeptech startup environment, high-end innovation-driven institutions, significant industry presence, and burgeoning domestic angel investor class attract 45 percent of generative AI startups. 
The second-largest pool is 21 percent from Mumbai-Pune. The report revealed that 74 percent of startups are generative AI natives, and 26 percent have pivoted. 37 percent of non-commercialized solutions should find markets within a year. Many Indian generative AI firms use the public cloud, cloud-based databases, pre-trained models, and custom visualization tools.
Big investments in native Indian fundamental models and enterprise-grade software services are yet to come because the technology is young. Indian generative AI startups confront limited financing, high-quality and ready-to-use training datasets, and high-performance compute power at scale. 
Lack of clarity on data protection, security, ethical principles, and globally standardized generative AI usage criteria may limit expansion. Upskilling a large workforce in 6-12 months is difficult. From 2013 through 2022, 1,900 Indian AI startups received US$8 billion in funding, including US$3.2 billion in 2022.