Mumbai: India is part of a prestigious consortium of the top five countries with the most startups, ranking third after the United States and China. According to CBInsights, the world currently boasts 1,206 unicorns—private companies valued at over $1 billion—with India home to 6% of them. These unicorns represent $193 billion of the total global unicorn valuation of $3.8 trillion. In contrast, the US contributes 54%, with a total valuation of $2 trillion, and China follows with 14%, valuing its unicorns at $738 billion.
The thriving startup culture in India, driven by a combination of educated youth, government policies, and access to funding, is reshaping the global economic order. The Gen AI wave has further accelerated growth, with over 100 startups building India’s Gen AI ecosystem. Although India’s Gen AI sector is still in its infancy compared to global counterparts, it shows immense potential for growth.
OpenAI’s Chat-GPT 3 marked a significant turning point in the Gen AI sector, being the first large language model to achieve rapid adoption. Within a few months, Chat-GPT 3 amassed over 100 million active users, making it the fastest-growing consumer application in history. This success led to the release of Chat-GPT 4, a more advanced version, securing $11 billion in funding for OpenAI.
In India, the government’s push to turn the country into a hub of job creators has played a crucial role in fostering startups. Initiatives such as the Indian Startup Initiative have created an environment conducive to entrepreneurship, enabling businesses to thrive. Notably, cities like Bangalore have become tech hubs, housing notable startups like CRED and Cult.fit.
The Indian startup ecosystem is further supported by over 763 accelerators and incubators, providing mentorship and early-stage funding. With more than 1,600 venture capital firms operating across the country, startups have ample opportunities to scale.
Top Gen AI Startups in India
1. Observe AI
Founded in 2017, Observe AI is a conversational intelligence platform for contact centres. With $214 million in funding, its biggest investors include Zoom and Y Combinator. Competing with companies like Noogata, Observe AI continues to drive innovation in AI-powered contact centre solutions.
2. Pixis
Established in 2020, Pixis provides a codeless AI infrastructure that helps brands orchestrate marketing campaigns. With $209 million in capital, Pixis collaborates with Grupo Carso and Chiratae Ventures, making waves in the marketing tech sector.
3. Ola Krutium
Launched in 2022 by Bhavvish Aggarwal, Ola Krutium focuses on developing India-specific large language models (LLMs). With $74 million in funding, it has emerged as a leading AI startup, competing with Mistral AI and Sarvam AI.
4. Sarvam AI
Founded in 2023, Sarvam AI builds custom LLMs for Indian users. Backed by Peak XV Partners, it has raised $41 million, placing it in direct competition with global players like Mistral AI.
5. Avaamo
Since its inception in 2014, Avaamo has focused on creating deep-learning software for conversational interfaces. With over $30 million in funding from Intel Capital and Ericsson Ventures, Avaamo is revolutionising enterprise tech.
6. InVideo
Founded in 2019, InVideo operates a web-based video editing platform. Supported by Peak XV Partners and Tiger Global, it offers AI-powered tools that simplify video creation.
7. Senseforth
Established in 2017, Senseforth specialises in AI-powered human-like conversations. It has raised $16 million and competes with MoonShot AI and Suki.
8. Rephrase AI
Founded in 2019, Rephrase AI focuses on AI-driven video creation. Recently acquired by Adobe, it raised $12 million and stands out among startups like VideoDubber and MURFAI.
9. Murf AI
Launched in 2020, Murf AI allows users to generate voiceovers using AI. With $11.5 million in funding, Murf AI competes with Imaginario AI and Rephrase AI.
10. DhiWise
Founded in 2021, DhiWise automates app development. It has raised $9 million, with Accel and Storm Ventures backing its mission to transform web and mobile app creation.
India’s Gen AI startups are undoubtedly shaping the future of the country’s economy. With favourable government policies and a wealth of skilled workers, the country is well on its way to becoming a global leader in the startup ecosystem.
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