India’s AI-startup ecosystem draws fresh capital as funding rounds broaden

India’s native AI-startup ecosystem has surpassed 150 firms and collectively raised more than **US $1.5 billion since 2020**. The local AI market is also expected to reach **US $17 billion by 2027**, supported by government infrastructure investment and talent density. Meanwhile, in the first three quarters of 2025, Indian tech startups raised US $7.7 billion (down 23 % year-on-year), while investors launched over US $9 billion into new funds — signalling both caution and long-term optimism.