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Start-ups play a significant role in economic growth. With proven ability to deliver intelligent solutions, companies have focused in maximizing the adoption of AI into their businesses. This has also led to an increase in start-ups using AI technologies to provide smart solutions to business problems. In this section we focus on the start-up ecosystem in India and its AI adoption.
The following keywords were used to obtain a list of AI-related companies on Crunchbase: Artificial Intelligence, Machine Learning, Natural Language Processing, Computer Vision, Facial Recognition, Image Recognition, Speech Recognition, Semantic Search, Semantic Web, Text Analytics, Virtual Assistant, Visual Search, Predictive Analytics, Intelligent System.
Source of Data: Crunchbase (CB)
Panel A shows the distribution of AI start-ups across India. Karnataka, the home for the IT capital of India Bengaluru has attracted entrepreneurs over the years. Karnataka has the maximum count of AI start-ups established in India. The states of Southern India including Maharashtra accounts is the primary location for more than half of the AI start-ups in India.
Panel B displays the growth of AI start-ups as a proportion to all the start-ups in India from 2000 to 2019. The proportion increased by 4 times during 2013-2019 when compared to 2000-2012.
Panel A shows the increasing proportion of funding received by AI start-ups to all the start-ups over the years. The proportion increased by 27.57 CAGR from 2013-2019. Funds received by these start-ups doubled in 2018 and 2019 when compared to the previous years.
Average funding ranks of different funding rounds is visualized in panel B. CB uses an algorithmic approach to assign rank to the top 100,000 most active funding rounds. Average funding rank of funding rounds of AI and all the start-ups have improved over the years.
From panel C we can infer that nearly 91% of funds are received in the seed and early venture stage. Panel D shows the distribution of the counts of funds received in each stage over the years.
AI start-ups have attracted investors with increasing number of investments made into AI start-up over the years. The trend visualized in panel A shows that in 2019 out of all investments made into start-ups in India 8.2% of them were made into AI start-ups. It has increased by nearly 4 times when compared to 2.81 in 2013.