Boom in AI fuels a flurry of startups in India
New Delhi, May 30 -- There's a scramble to register artificial intelligence (AI) companies, as India's public and private sectors embrace the technology that's transforming industries worldwide.
Company registration data shows 100-200 new AI-centric businesses take birth every month as tech entrepreneurs venture into health, agriculture, cloud and robotics, powering India's robust service sector.
In April alone, 226 AI-focused businesses were incorporated, a jump from 86 a year earlier, data from the ministry of corporate affairs showed. That again was a big jump from a small base in the year before. Most new ventures in April were companies, while more than two dozen were limited liability partnerships (LLPs).
In the first three months of 2025, AI-focused business registrations steadily rose from 124 to 203, data showed. Many of these businesses feature 'AI' prominently in their names, as well as others like health, farm, cloud, robotics etc.
Experts say India's combination of technology and software talent, moderating computing costs and innovation in solving social and business challenges are driving entrepreneurship in the AI space. Availability of free versions of large language models like ChatGPT, wide usage of smartphones and low internet cost are aiding in AI's wider use. India's AI startup wave is being shaped by an emerging coalition of seasoned professionals and heavyweight investors, said Rohit Pandharkar, technology consulting partner, EY India.
"It's no longer just venture capital firms like Lightspeed, Peak XV, and Pi Ventures writing early cheques, but ex-founders and product leaders from Flipkart, Freshworks and Google India are also stepping in as angel investors, validating ideas and syndicating deals upstream. Sarvam AI's $41 million raise, backed by Lightspeed, Khosla Ventures, and Peak XV, is a case in point," said Pandharkar, referring to the transaction announced in 2023.
Lightspeed Management Co., LLC on its website lists over 75 Indian companies it has invested in including Zepto, Razorpay and Sarvam AI, a generative AI start-up.
"This blend of hands-on expertise and institutional capital is collapsing the funding cycle and helping technical founders commercialize faster," Pandharkar said. "It's a smarter model, and one that's uniquely suited to India's AI ambitions."
AI is getting a boost given its extensive adoption by private and government sectors. The government has stepped up with the $1.25 billion IndiaAI Mission approved, aiming to establish the nation as a global leader....
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