AI startups corner 15% VC funds in India in 2023

Chennai, June 26 (KNN) The share of venture capitalists (VC) investments in AI startups stands at 15 per cent of the total VC funding in the first five months of 2023 (January-May) compared to a corresponding 10 per cent share commanded by AI startups in 2022,as per the data released by firm Venture Intelligence.

As per the data, overall the VC investments have slumped on the back of a difficult economic environment in 2023, and accordingly, AI investments stood at just 28 deals worth USD 0.5 billion in 2023 (January-May) compared to 114 deals worth USD 2.4 billion in 2022.

However, the growth in share of AI investments over the last three years is reflective of investors’ bullishness for AI, industry trackers and investors told TOI.

“The heightened interest and deal activity around AI in the US is also translating to the Indian ecosystem and AI-centric ideation by existing and new startups is on the rise,” they said.

Vishesh Rajaram of Speciale Invest says many entrepreneurs are exploring ways to strengthen their business proposition with AI.

“Some are doing it to prevent AI from disrupting their product, and while some are fads,” he adds.  (KNN Bureau)