Mumbai: India has cemented its position as a global leader in generative artificial intelligence (GenAI), emerging as a powerhouse for startups within this field. According to NASSCOM’s Generative AI Tracker: Tech Industry Activity in Q2 FY2025, Indian GenAI startups collectively secured $51 million in funding this year, marking a dramatic improvement from the $8 million raised during Q1 FY25.
The funding momentum gained pace in Q2 FY25, with 20 successful rounds propelling year-on-year growth by 3.4%. Early-stage investments dominated, comprising 77% of all funding rounds. Companies like Nurix AI, Dashtoon, and Mihup led this growth, attracting over 90% of the total capital.
Steady Recovery from a Sluggish Start
GenAI funding rounds in India experienced a sluggish Q1 FY25, attributed to the absence of prominent investors such as Krutrim and Sarvam. However, Q2 saw a robust recovery, tripling funding compared to earlier quarters.
Notably, Series A funding for GenAI startups, which was previously capped at $15 million, saw renewed interest as investors recognised the sector’s potential for enterprise applications.
Partnerships Driving India’s GenAI Revolution
Strategic partnerships have emerged as a driving force in India’s GenAI ecosystem. Collaborations increased by 25% in Q2 FY25 compared to the previous quarter.
Key partnerships include Accenture’s collaboration with Unilever to integrate GenAI for enhanced operational efficiency and Genpact’s alliance with Volkswagen Financial Services to revolutionise AI applications in finance. These alliances signal a shift from building GenAI use-case scenarios to deploying production-ready solutions.
India’s Global Edge in GenAI
India’s early adoption of GenAI and its skilled talent pool offer a unique advantage. As nations worldwide race to integrate GenAI into their economies, India stands poised to leverage its head start, not only in innovation but also in forging global alliances and scaling GenAI platform capabilities.
By focusing on enterprise applications, strategic partnerships, and government-led skilling initiatives, India is positioned to lead the GenAI revolution, fostering a future where AI drives economic and social growth.
India’s generative AI startups raised $51M in 2025, tripling Q2 funding, as per NASSCOM. Key players include Nurix AI, Dashtoon, and Mihup, driving innovation through partnerships and enterprise applications. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
