India has seen a surge in Generative AI investments for the second-quarter of the year with a six times quarter-on-quarter growth, mostly in B2B platforms and productivity platforms. A new report released by Nasscom has shared that there were record 20 funding rounds in the time period, a jump over the slowdown in the previous quarter. 

Titled, ‘Generative AI Tracker: Tech Industry Activity in Q2FY2025,’ the report revealed that total funding had increased by 3.4 times year-on-year led by investments in AI enterprise applications and agentic AI tools. Funding rounds also grew by 3 times in the quarter with early-stage investments accounting for 77% of them, including angel and seed funding. 

AI service providers evolved from building use case portfolios to active Proof of Concepts into then production-ready solutions. Additionally, partnerships surged by 25% quarter-on-quarter more on product features, joint go-to-market strategies and government upskilling initiatives. 

The report noted that India currently ranks sixth among major economies in the GenAI landscape while also showing signs of maturity with marked signs of progress in talent grooming, funding and innovation. 

“The generative AI landscape is evolving rapidly, reshaping technology service providers and unlocking new capabilities. Providers are reevaluating strategies and increasing investments in technology and talent. Q2FY2025 marked a key shift in India’s GenAI space, with funding focused on impactful applications that enhance productivity. Future success will rely on strategic innovations, pilot project results, and lessons learned along the way,” Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom, stated.