India’s AI Funding Grows Slowly as U.S. Capital Floods the Sector

[AIcash]

AI startups in India raised just $643 million across 100 deals in 2025, a modest 4% increase from last year, highlighting a sharp contrast with the U.S., where AI funding surged past $121 billion.

Most Indian AI funding went to early and early-growth stages, reflecting investor preference for application-led businesses rather than capital-intensive foundational models.

Accel partner Prayank Swaroop said India lacks large AI-first companies with $40–$100 million in annual revenue, making applied AI and adjacent deep tech more realistic near-term bets.

[bcd8b07f7c]

India has been pumping it

[Capybara_Capybara]

Pumping talent, not capital.

[The_Walking_Dead]

Apps first, infra later.