India's share of global funding pie in AI stands at 0.6%, shows data

Even as India focuses on attracting private equity (PE) and venture capital (VC) funding in artificial intelligence (AI), the country’s share of global funding in the space in 2025 was a minuscule 1.34 per cent of the total $225.8 billion — reflecting the long and arduous road ahead for startups seeking global private capital.

 

Based on data from CB Insights, total funding for AI companies in India in 2025 stood at $1.34 billion across 198 deals. While this marked an increase from 2024, when funding was pegged at $1 billion across 228 deals, India’s global share has changed only marginally. In 2024, it accounted for just 0.87 per cent of total global PE/VC investments in AI startups.

 

Within Asia, India’s share of global PE/VC funding in 2025 was 11 per cent of the $12.2 billion invested in the region. In contrast, China, whose AI push is funded largely through government support, still attracted $6.7 billion in PE/VC funding in 2025, accounting for 56 per cent of the total investment in the region.

 

The global PE/VC strategy in AI reflects two clear trends. First, investors are betting heavily on companies developing large language models (LLMs), which accounted for 41 per cent of total funding raised in 2025. Second, funding is being driven by mega-rounds of over $100 million, which made up 79 per cent of total investment, underlining the high cost of AI development.

 

LLM developers, including OpenAI, Anthropic, and xAI, raised more than $86.3 billion, nearly a third of total AI funding in 2025. Investors are increasingly funnelling capital into fewer, larger bets rather than spreading it across smaller AI startups.

 

In India, however, 82 per cent of AI funding in 2025 went to early-stage startups — higher than the Asian average of 72 per cent. Mid-stage companies accounted for just 8 per cent, compared with an Asian average of 16 per cent, while the remainder went to late-stage firms. This reflects India’s early phase of AI investment, much of which is being supported by the government.

 

In the fourth quarter of 2025, five Indian AI companies raised between $16 million (SpeakX) and $50 million (Digantara and UnifyApps). Investors included homegrown Kalaari Capital, Ronnie Screwvala, and SBI Holdings, as well as Peak XV Partners, WestBridge Capital, and Barings, among others.

 

At the global level, Europe attracted substantial private equity capital for AI, receiving $21 billion in 2025 — more than 9 per cent of total global funding. Countries to watch include the UK ($6.9 billion), France, and Germany.