Indian-Origin AI Startups Make Global Impact with Robust Funding and Innovation

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Indian-origin artificial intelligence (AI) startups are gaining global recognition, attracting substantial investments, and pioneering innovations across multiple sectors. From language models tailored to India’s linguistic diversity to enterprise-focused AI tools, these companies are redefining India’s position on the global AI map.

Among the leading names is Sarvam AI, which has raised 41 million dollars in Series A funding. The round was led by Lightspeed Venture Partners, with participation from Khosla Ventures and Peak XV. Sarvam AI is focused on building foundational language models in 10 Indian languages and has been chosen by the Indian government to develop the country’s first indigenous large language model under the IndiaAI Mission.

Another notable startup is Krutrim AI, founded by Bhavish Aggarwal, the entrepreneur behind Ola. Krutrim AI recently became India’s first AI unicorn after securing 50 million dollars in funding, valuing the company at 1 billion dollars. The startup is working on building multilingual AI systems specifically for India’s diverse population.

In the enterprise sector, Observe.AI has raised 214 million dollars across six funding rounds. The company offers a conversational intelligence platform for contact centers and counts Zoom, Y Combinator, and Nexus Venture Partners among its investors. Similarly, Pixis has attracted 209 million dollars in funding for its no-code AI platform, which helps companies design and execute marketing campaigns more effectively.

India’s AI startup ecosystem is experiencing rapid growth. As of April 2025, over 220 AI-focused startups are operating in the country, a significant increase from the 86 recorded the previous year. This surge reflects growing investor confidence and a favorable policy environment for AI innovation.

Industry experts believe that Indian startups are uniquely positioned to lead AI development, especially in areas requiring language-specific and culturally nuanced solutions. The rise in funding and innovation also signals India’s broader ambition to become a global AI powerhouse.