Investors are funding AI-based applications in India, says Peak XV MD Rajan Anandan
Jul 04, 2024
New Delhi [India], July 4 : On the reluctance of venture capitalists (VCs) to fund Artificial Intelligence (AI) companies in India, Rajan Anandan, Managing Director, PeakXV Partners and Surge said that investors are betting on companies that are using AI-based applications to offer solutions, unlike in the US where investors are funding AI Startups.
Speaking on the second day of the Global India AI Summit 2024, hosted by the Ministry of Electronics and Information Technology (MeitY) in New Delhi, Anandan said that AI landscape in the US and India are different.
Rajan Anandan highlighted that the Startup opportunities in India are completely different to that in the US. In the US and its bay, everything revolves around AI. Whereas, Startups opportunities in India is about AI square, India presents a unique opportunity blended with AI and its associated uses to solve specific needs and problems of consumers.
"India today is being built. As India gets built it needs more brands, hospitals, retailers, schools, financial institutions, banks, lenders, insurance companies, and we will need more core technology such as semiconductors etc.," Anandan explained.
He said what you are seeing in India today is a very different AI ecosystem. It is much more vibrant and diverse than they are in other countries.
Underscoring the new trends in the Startup investment ecosystem, he said that we are beginning to see a very different weave of AI-Application companies in India, the companies that are leveraging AI to build useful applications where investments can be seen.
He said that these companies are working across sectors such as consumer applications, healthcare, insurance, services agriculture among others.
India doesn't have a scarcity of capital, there are almost 20 billion dollars of dry powder with the venture capitalists and private capital firms together. Dry powder refers to the committed but unallocated capital a firm has on hand.
Highlighting the success of India's digital initiatives such as digital payments, he said we always assume that India is behind whenever a new technology comes but the country has proved that the country is best at quickly adopting the revolutionary technologies. "We don't have to be the first or second but we are the best," he added.
Going ahead, Anandan batted for bringing AI researchers back to the country citing the successful case of China.
Peak XV Partners have made 25 AI investments over the last one and a half years. VCs are investing their funds in the most interesting companies that are engaged in providing unique solutions to consumers.
Hosted by MeitY the two-day Global India AI Summit 2024, was inaugurated by Union Minister Ashwini Vaishnaw on Wednesday. The event brought together a distinguished assembly of international delegates, AI experts, and policymakers.
Organised in the context of India's leadership role in the Global Partnership on Artificial Intelligence (GPAI), the summit aims to address the multifaceted challenges and opportunities presented by AI.
With a focus on Compute Capacity, Foundational Models, Datasets, Application Development, Future Skills, Startup Financing, and Safe and Trusted AI, the event promises a comprehensive exploration of the AI landscape.
