Despite the pandemic and the resulting lockdowns, the AI startups in India have attracted total funding of $836.3 million — the largest funding outlay in the last seven years at a 9.7% year-on-year growth — last year, a report by AIMResearch, titled Indian AI Startup Funding in 2020, showed. The research also projects double-digit growth in the next 5-6 years, ushering in a period of consolidation and maturity of the Indian data science market.
The number of startups that received funding in 2020 doubled from 2019, signalling the rising cachet of India’s data science startups, regardless of size and revenue stage. The research covered both pure-play data science startups and startups that leverage AI or Analytics or any other Deep Learning domain, such as Computer Vision or NLP, to develop a core solution/platform for enterprises/consumers across sectors or industries.
The report details the year-on-year comparison of funding, location-wise distribution of startups, funding in terms of high-value investments, month-wise investments, stages and series of funding, among others.
While 2019 saw a big chunk of investments going to “pure-play” data startups, in 2020, most of the funding went to startups that utilised data science or deep learning technologies to develop their core digital or technology products and services across various sectors. In 2020, robotics and machines oriented startups received $7 million in funding, unlike the paltry investments in 2019.
On the industry side, AI startups in agriculture, industrial & manufacturing, real estate, and consumer goods sectors attracted cumulative funding of $23.3 million.
In a city-based breakup, Bangalore’s startups received the highest investment for the third time in a row. The cumulative funding for startups based in Bangalore stood at $535.1 million. This was followed by startups based in Delhi NCR, with combined funding of $230.6 million, and Mumbai with total funding of $42.7 million.
Table of Content
- Executive Summary
- Research Methodology
- Coverage of Start-up Enterprises
- Key Highlights
- Year-on-Year Funding Comparison
- Startups Receiving Funding Over Consecutive Years
- Startups Receiving High-value Investments (greater than 25 Mn)
- Location–wise Distribution of Startups
- Stages and Series of Funding
- Top Investment Funds of 2020
- Domain and Industry Specific Funding
- Month-wise Investments
- Smaller-funded Start-up Stack