- Published on August 7, 2025
- In AI Startups
Guardian ‘Angels’ Turn Gatekeepers as Indian AI Startups Face Tighter Checks
Only $94.8 million has been raised from 13 funding rounds as of July 30, the lowest since 2017.
Image by Nalini Nirad
- By Smruthi Nadig
India’s AI startup boom once saw angel investors racing to grab early equity in anything involving AI in its pitch deck. However, come 2025, the euphoria seems to be cooling. Funding rounds have thinned, seed-stage cheques are drying up, and angel investors are keeping their powder dry.
While investors such as AngelList, Accel and Venture Catalysts have been active with multiple portfolio companies, the number of active angel investors has decreased compared to previous years. Notably, there are significantly fewer new deals reported in 2025, according to data from Traxcn.
Most investments are concentrated in the Seed and Series A stages, with some angel investors contributing at the Seed stage. Moreover, the significant number of Seed investments suggests that early-stage AI start
📣 Want to advertise in AIM? Book here
Smruthi Nadig
Smruthi brings over two years of experience in reporting on the global energy industry. They hold a Master's Degree from the University of Leeds in International Journalism and a Bachelor's Degree from Christ University in Media Studies, Economics and Political Science.
Related Posts
Enterprises Beware: Agent-Washing Clouds the Future of AI
Vendors mislabel copilots as agents, raising regulatory and operational risks for firms chasing the promise of agentic AI.
How Neysa Stands Out in the IndiaAI GPU Race
Unlike other providers focused on GPU allocation, Neysa claims to deliver an end-to-end AI cloud platform.
Two Indian Engineers on a Mission to Automate Home Cooking for the World
In a live demonstration for AIM, Posha prepared paneer tikka masala in approximately 25 minutes
BharatGen and the Pursuit of Sovereign, Scalable AI for India
“Knowledge-driven components are important because we don’t want everything to be just algorithmic innovation.”
How Pradhi AI Embeds Emotional Intelligence in Voice AI
As businesses recognise the potential of voice-driven tech, Pradhi AI is laying the foundation for an empathetic, responsive AI ecosystem.
Mangaluru Looks to Build Its Own Tech Identity, Not Replicate Bangalore
“The coastal city could showcase tangible results by applying deep tech to areas it already dominates”
Google’s Gemini Nano Banana and the Cost of Convenience
The company’s new AI image and photo editor deepens concerns over data use and consent gaps, experts warn.
BharatGen’s ‘Recipe’ for Building a Trillion Parameters Indic Model
The consortium insists sovereignty doesn’t mean shutting the door on global players.
Download the easiest way to
stay informed
stay informed
