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India is no longer just an outsourcing hub; it is emerging as a powerhouse in artificial intelligence (AI) innovation. Home to an expanding digital economy and a robust engineering talent pool, India’s AI startups are attracting unprecedented levels of capital.

Read more : Top 5 Most Promising and Disruptive AI Startups in India 2025

1. Krutrim – $1 Billion+

India’s Biggest AI Startups Based on How Much Money They've Raised (as of March 2025)
India’s First Billion Dollar AI Startup: Krutrim

  • Founder: Bhavish Aggarwal (Co-founder of Ola)

  • Headquarters: Bengaluru, Karnataka, India

  • Website: www.krutrim.com

  • Parent Company: Independently operated under Bhavish Aggarwal's entrepreneurial group, separate from Ola Electric.

Krutrim is India’s first homegrown AI company to develop a foundational large language model (LLM) focused on Indian languages and cultural nuances. In January 2025, it secured over $1 billion in Series B funding led by sovereign wealth funds from the Middle East, alongside marquee VCs such as Sequoia Capital India.

Strengths: Deep commitment to "Bharat-centric" AI models, bridging India’s linguistic diversity (22+ official languages); strong backing from Aggarwal’s existing mobility and energy ecosystem.

Weaknesses: Heavy capital burn rate due to infrastructure demands (compute power and data center investments); slower international expansion compared to US and Chinese AI giants.

Strategic focus: Krutrim aims to become India’s "AI OS," powering applications from voice assistants in rural areas to enterprise-grade tools for Indian corporates.

2. Sarvam AI – $750 Million

India’s Biggest AI Startups Based on How Much Money They've Raised (as of March 2025)
Sarvam AI

  • Founders: Vivek Raghavan and Prateek Dubey (former leadership roles at UIDAI and Microsoft Research)

  • Headquarters: Hyderabad, Telangana, India

  • Website: www.sarvam.ai

  • Parent Company: Independent

Sarvam AI is building domain-specific generative AI solutions with a focus on regulated sectors such as finance, insurance, and healthcare. Its $300 million Series C in early 2025 came from Tiger Global, Lightspeed Venture Partners, and India’s National Investment and Infrastructure Fund (NIIF).

Strengths: Strong ties to India’s government and regulatory bodies; deep expertise in applied AI for compliance-heavy sectors.

Weaknesses: Limited brand recognition outside India; high dependency on Indian enterprises which could slow global scalability.

Strategic focus: Sarvam AI is positioning itself as the “enterprise AI layer” for India’s traditional industries, focusing on automating complex back-office and customer-facing operations.

Read more: Top 5 AI Female Founders Transforming the World in 2025

3. Niramai – $500 Million

India’s Biggest AI Startups Based on How Much Money They've Raised (as of March 2025)
Niramai

  • Founder: Dr. Geetha Manjunath (ex-HP Labs and Xerox Research)

  • Headquarters: Bengaluru, Karnataka, India

  • Website: www.niramai.com

  • Parent Company: Independent

Niramai is a pioneer in AI-driven healthtech, specializing in non-invasive breast cancer detection using thermal imaging and machine learning. It raised $500 million through a combination of Series D funding from healthcare-focused funds like HealthQuad and strategic investments from Philips and GE Healthcare.

Strengths: Affordable, portable diagnostic solution ideal for underserved markets in India and Southeast Asia; strong clinical validation with deployments across 500+ hospitals.

Weaknesses: Regulatory bottlenecks in scaling to Western markets; high reliance on B2B healthcare partners for distribution.

Strategic focus: Beyond cancer screening, Niramai is now expanding into AI tools for detecting other non-communicable diseases, tapping into India’s growing preventive healthcare market.

4. Yellow.ai – $400 Million

India’s Biggest AI Startups Based on How Much Money They've Raised (as of March 2025)
Yellow.ai Is Crafting GenAI-Powered Customer Support To Strengthen Enterprise Growth

  • Founders: Raghu Ravinutala, Jaya Kishore Reddy, Rashid Khan

  • Headquarters: Bengaluru, Karnataka, India

  • Website: www.yellow.ai

  • Parent Company: Independent

Yellow.ai is a leading player in conversational AI and customer experience automation. Backed by WestBridge Capital and Sapphire Ventures, Yellow.ai has raised $400 million to date, with a focus on scaling its global footprint.

Strengths: Robust multilingual AI capabilities (over 100 languages); partnerships with major brands like Hyundai, Sony, and Asian Paints.

Weaknesses: Faces stiff competition from global players like Google Dialogflow and Microsoft Bot Framework; slower adoption in North American markets.

Strategic focus: Yellow.ai is doubling down on generative AI, aiming to offer more human-like virtual assistants capable of handling complex customer queries autonomously.

5. Mad Street Den – $300 Million

India’s Biggest AI Startups Based on How Much Money They've Raised (as of March 2025)
AI startup Mad Street Den

  • Founders: Ashwini Asokan and Anand Chandrasekaran (ex-Intel and Stanford AI Lab)

  • Headquarters: Chennai, Tamil Nadu, India

  • Website: www.madstreetden.com

  • Parent Company: Independent

Mad Street Den focuses on computer vision and AI for retail and e-commerce through its flagship platform, Vue.ai. With $300 million raised from investors like Sequoia Capital and Falcon Edge Capital, it is at the intersection of fashion tech and AI automation.

Strengths: Proprietary computer vision algorithms; strong presence in retail automation for global fashion brands.

Weaknesses: Highly niche market (retail AI); scaling beyond fashion verticals remains a challenge.

Strategic focus: Mad Street Den is investing in AI for supply chain optimization and virtual retail twins, aligning with the rise of omnichannel retail experiences.

India’s AI Surge

India’s AI landscape is thriving thanks to factors such as:

• National AI Mission: The Indian government’s flagship program aimed at fostering innovation, including setting up AI research centers and data parks.

• Public-private partnerships: Collaborations between Indian startups and multinational corporations, offering both funding and distribution networks.

• Massive digital adoption: With over 850 million internet users, India offers a large domestic market for AI applications in areas such as fintech, healthcare, and agritech.

While India still trails behind China and the US in terms of AI unicorn counts, the gap is narrowing quickly. Indian AI startups, particularly those focusing on regional and sector-specific applications, are carving out a distinct identity that merges global AI advancements with local solutions.

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