- Published on May 21, 2025
- In AI Startups
Bengaluru’s AI Ecosystem Shows Resilience Amid Plunging Investments
Despite a slowdown in funding, Karnataka, especially Bangalore, remains a key AI tech hub, benefiting from its skilled talent pool amid rising competition from other cities.
- By Smruthi Nadig
Although funding for AI startups has slowed in recent years in India, venture capitalists remain optimistic about AI growth. Overall tech funding in Karnataka dropped 46% year-on-year to $633 million in the first quarter of 2025, compared to the same period in 2024, according to a report by Traxcn.
However, AI-related startups have secured some backing in the early-stage rounds.
Anoop Menon, principal of investments at Chiratae Ventures, believes deep tech and AI are significant current focuses. Given the momentum open platforms have demonstrated over the last two to three years, Anoop says AI is where the attention is.
“The focus among Indian investors has been on finding entrepreneurs who can rapidly build application-layer software,” Menon added. “When you c
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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.
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