India’s Generative AI (GenAI) startup ecosystem is witnessing unprecedented growth across infrastructure, applications, and services.

According to India’s Generative AI Startup Landscape 2024 report, over 17 Indic and vertical-specific models have been launched in the past year alone, there has been a fourfold increase in GenAI assistant applications, and there has been a 4.6X surge in GenAI services startups. This rapid expansion highlights a diverse and broad-based adoption of GenAI technologies.

Geographically, while established hubs maintain dominance, the emergence of 10–15 new hubs for GenAI startups underscores the decentralization of innovation in the sector. Indian GenAI startups leverage industry partnerships extensively, optimizing collaboration to achieve varied strategic goals.

Investor interest in GenAI is also on a sharp rise. As per Statista, funding for Indian GenAI startups reached an impressive $760 million in the first half of 2024, marking a significant leap from 2021. This momentum is mirrored in the strategic priorities of Indian executives. The EY CEO Outlook Pulse 2023 report reveals that 84% of Indian CEOs are reallocating budgets or securing fresh capital for GenAI investments—well above the global average of 70%.

Indian investors and accelerators are pivotal in this ecosystem, fueling innovation and driving the country’s leadership in GenAI. These developments collectively position India as a burgeoning hub for GenAI, poised to redefine AI-driven advancements globally.

The following are some of the interesting Indian AI startup investors involved in the space:

IIMA Ventures

IIMA Ventures was established in 2002 at the Indian Institute of Management Ahmedabad. Backed by the Government of India's Department of Science and Technology and Gujarat, the organization financially supports early-stage ventures.

Funding:

• Seed Funding: Government grants and investments ranging from ₹10 lakh to ₹15 lakh (approximately $12,000 to $18,000)
• Series A and Beyond: Investments of up to $5 million for more mature startups

Impact:

• Portfolio: IIMA Ventures has funded over 350 startups.
• Exits: The organization has facilitated more than 40 successful exits.

Recent Initiative:

People and Culture Accelerator: A pioneering program designed to address the HR challenges Indian startups face.

T-Hub

T-Hub, a collaborative initiative launched in 2015, is recognized as the world’s largest innovation campus. This partnership between the Government of Telangana, IIT Hyderabad, ISB, NALSAR, and industry leaders like Tech Mahindra and Cyient is dedicated to fostering innovation and entrepreneurship.

Located in Hyderabad, T-Hub offers:

• Infrastructure: Accommodation for approximately 1,000 startups, a data centre, and Centers of Excellence established by renowned organizations such as Apollo Tyres and NPCI.
• Partnerships: Partnerships with the Department of Science and Technology (DST) for the MATH initiative and NITI Aayog for the Atal Innovation Center (AIC).

Impact:

• Startup Ecosystem: T-Hub has nurtured over 2,000 startups since its inception.
• Funding: The platform has secured nearly $2 billion by partnering with over 80 angel investors and venture capital firms.

JioGenNext

JioGenNext is a prominent startup accelerator program initiated and sponsored by Reliance Industries Limited. The program engages with technology startups through the JioGenNext Mentor Acceleration Program (MAP) to facilitate their growth and scaling.

Established nearly a decade ago, JioGenNext’s partnership with the MeitY Startup Hub provides startups access to invaluable resources, including mentorship from RIL/Jio experts, industry leaders, and investors. This collaboration has resulted in the successful mentorship of numerous startups.

Since its inception, JioGenNext has conducted 18 startup mentorship programs, attracting over 13,670 applications. The program has mentored 177 startups, raising approximately USD 545 million in early-stage venture capital. JioGenNext has supported 185 startups, many of which have achieved significant milestones, including substantial funding rounds and acquisitions.

InnoVen Capital

A leading Mumbai-based venture debt firm, InnoVen Capital secured the third most active investor position during the first half of 2024, having backed 25 startups. Its notable investments include BharatPe, BlueStone, and Rebel Foods.

Founded in 2008 by Ashish Sharma, InnoVen Capital provides debt capital to early-stage and growth-stage technology startups. The firm has supported various successful companies, including Swiggy, Zoomcar, OYO, and Epigamia.

Titan Capital

Founded in 2015 by Kunal Bahl, the co-founder of Snapdeal, Titan Capital is an India-based venture capital firm focused on providing capital to early-stage startups, primarily in the SaaS and fintech sectors.

The firm typically invests between $300,000 and $500,000 in initial funding rounds and has made over 300 investments. In 2023, Titan Capital launched the “Winners Fund,” a ₹300 crore ($36 million) fund designed to support existing portfolio companies in later-stage funding rounds. It marks the firm’s first external capital raise, enabling it to participate in larger Series A, B, and C rounds beyond the founders’ investments.

Titan Capital has initiated the “We are Funding” program, which offers comprehensive support to entrepreneurs in the early stages of their ventures. This program provides access to a network of experienced mentors, industry experts, and strategic partners.

India Accelerator

India Accelerator is a prominent startup accelerator based in India that focuses on nurturing early-stage startups specializing in generative AI. It emphasises content creation, automated workflows, and data generation. Founded in 2017 by Ashish Bhatia, India Accelerator is a leader in this field. 

India Accelerator invests up to $500,000 in seed capital through its SEBI-registered Alternative Investment Funds (AIFs). This investment is typically accompanied by an equity stake of 5-15% in the startups participating in its accelerator program.

Since its inception, the accelerator has successfully supported over 100 startups. Many of these startups have secured significant follow-on funding from renowned investors.

Disclaimer

The list of startup investors provided here is for informational purposes only. Please refer to the respective portal for further details or specific information.