GenAI startups in India see 3.6x surge in H1CY24

India's GenAI ecosystem has witnessed strong, broad-based growth, with the total number of GenAI startups increasing 3.6 times to more than 240 by the first half of 2024 (H12024) from over 66 in H12023, according to a report by IT trade body Nasscom.

- PEERZADA ABRAR

The report is based on insights from over 110 startup interviews and research on more than 240 active GenAI startups.

This growth is majorly fueled by the launch of 17 native GenAI language models in India, a 4.6 times surge in GenAI services. There is also a significant increase in the number of startups offering GenAI assistants, comprising nearly 80 per cent of newly added startups over the year.

Despite an early-stage focus, India's GenAI startups have attracted over $750 million in cumulative funding since 2023, with 75 per cent startups in H12024 now generating revenue, a significant jump from 22 per cent in H12023. Today, India ranks 6th globally in the share of GenAI startup ecosystems among major economies.