Rajan Anandan Discusses AI Investment Trends at Global India AI Summit 2024
New Delhi [India], July 4: Rajan Anandan, Managing Director of PeakXV Partners and Surge, spoke about the reluctance of venture capitalists (VCs) to fund Artificial Intelligence (AI) companies in India. He explained that investors in India are betting on companies using AI-based applications to offer solutions, unlike in the US where investors fund AI startups directly.
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 highlighted that the AI landscape in the US and India are different. He noted that startup opportunities in India are unique, focusing on AI applications to solve specific consumer needs.
“India today is being built. As India gets built, it needs more brands, hospitals, retailers, schools, financial institutions, banks, lenders, insurance companies, and core technology such as semiconductors,” Anandan explained. He emphasized that India’s AI ecosystem is vibrant and diverse, with companies leveraging AI across sectors like consumer applications, healthcare, insurance, services, and agriculture.
Anandan also mentioned that India has around 20 billion dollars of dry powder, which refers to committed but unallocated capital. He highlighted the success of India’s digital initiatives, such as digital payments, and stressed the importance of bringing AI researchers back to the country, citing China’s success in this area.
Peak XV Partners have made 25 AI investments over the last one and a half years. VCs are investing in companies that provide unique solutions to consumers.
The two-day Global India AI Summit 2024, hosted by MeitY, was inaugurated by Union Minister Ashwini Vaishnaw. The event brought together international delegates, AI experts, and policymakers to address the challenges and opportunities presented by AI. The summit focused on Compute Capacity, Foundational Models, Datasets, Application Development, Future Skills, Startup Financing, and Safe and Trusted AI.
