Generative-AI startups have stoked investor interest as funding in the second quarter of the ongoing fiscal has increased 6.3 times to $51 million. It was at $8 million during the first quarter of 2024-25.
More than 90 per cent of GenAI funding during the quarter went to three startups -- Nurix AI, Dashtoon and Calcutta-based Mihup, Nasscom said on Monday in its GenAI tracker report.
Overall 77 per cent of the funding were from either angel or seed funding rounds.
Nurix AI, which provides AI agents for enterprise workflow management, raised $27.5 $51 MILLION IN Q2 million in two rounds. Dashtoon, a GenAI-assisted platform to create digital comics, raised a series A round of $12.8 million. Mihup, which offers an AI-based platform for conversational analytics for contact centers, raised $6 million.
Nasscom said the funds raised during the second quarter marked a revival after Q3 and Q4 of FY24 saw large fundraises by Sarvam.ai and Krutrim of $40+ million each
Aggregate funds raised in Q3FY24 and Q4FY24 were $55 million and $74 million, respectively.
Nasscom said in the report that after significant activity in building use case portfolios, product integrations and GenAI platforms, providers are now focused on converting active proof of concepts (PoCs) to production.
"Q2FY25 marked a key shift in India's GenAI space, with funding focused on impactful applications that enhance productivity. Future success will rely on strategic innovations, pilot project results, and lessons learned along the way," said Sangeeta Gupta, senior vice-president and chief strategy officer at Nasscom.
The number of funding rounds during Q2FY25 was 20 compared with six in Q1FY25
Nasscom said that diverse, but impact-driven partnerships have emerged for product capability enhancement, joint go-to-market, global AI alliances, government-led skilling and impact programmes, and to broaden GenAI platform offerings.
"Around 25 per cent more partnerships-related activity was reported in Q2FY25 over Q1," the industry body said.
On the skilling side, providers have pivoted from foundational AI literacy to advanced AI skilling, particularly in rapidly emerging platform integration and agentic AI space, the report said.
