- Published on April 5, 2025
- In AI Startups
Indian AI Startups Have a ‘Fancy Ice Cream’ Problem. Who’s to Blame?
Indian AI startups risk falling behind in a race increasingly defined by infrastructure, IP ownership, and sovereign capabilities.
- By Siddharth Jindal
In stark contrast to the global trend of surging AI funding, the Indian AI startup ecosystem is facing a significant downturn, raising concerns among investors, industry leaders, and the government.
A recent Tracxn report, shared exclusively with AIM, reveals that total funding for AI startups plunged by 53% year-on-year. It decreased from $305.9 million in FY 2023-24 to $143.6 million in FY 2024-25, alongside a 44% drop in the number of funding rounds.
Meanwhile, data from analytics firm Dealroom shows that global AI startups secured $110 billion in 2024, a 62% increase from the previous year, with US-based startups accounting for around 42% ($46.2 billion) of the total funding. Not to forget, OpenAI recently announced that it has raised $40 billion at a $300
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Siddharth Jindal
Siddharth is a media graduate who loves to explore tech through journalism and putting forward ideas worth pondering about in the era of artificial intelligence.
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