AI-first startups challenge India's $300 billion IT services giants

Venture capital pours into companies like Atomicwork and Nurix AI as autonomous agents promise to reshape enterprise workflows and force legacy players to adapt

When Atomicwork raised $25 million in January, the startup wasn't just another software company seeking venture capital. The Bengaluru-and San Francisco-based firm uses artificial intelligence agents that can autonomously handle everyday IT services.

 

The funding round, led by Khosla Ventures and backed by more than 40 global chief information officers, reflects a broader shift that is quietly reshaping the IT services industry. A new wave of AI-native startups — companies built from the ground up with artificial intelligence at their core — are challenging traditional players in the $300-billion IT-BPM industry.

 

AI-native startups are fundamentally different — they don’t just