July 2024 – Delhi, India – Praxis Global Alliance, a leading global management consulting firm, has unveiled its latest report, “AI & DeepTech,” offering a deep dive into the transformative landscape of AI and Deep Tech in India. This landmark report reveals a significant surge in funding for Indian Deep Tech startups, with FY22 seeing a remarkable tenfold increase over FY18.
- Key Highlights from the Report:
Nascent yet Thriving Ecosystem: Early-stage deals constitute about 93% of investments, indicating a rapidly growing sector poised for further expansion as funding momentum picks up. - Tech Startups Boom: Over 26,000 tech startups in India are driven by affordable tech talent and robust collaboration with premier institutions like IITs and IISc, fueling innovation and commercialization.
- Investment Thesis for DeepTech: Several AI and Deep Tech ventures have the potential to cater to a large segment of the market. Globally, the cumulative valuations of Deep Tech startups stand at US$ 450 – 500B. Many groundbreaking Deep Tech solutions are being commercialized, and successful exits continue to increase. The global Deep Tech unicorn exits from 2018 to 2022 have increased by 550%.
- Regulatory Support & Government Schemes: The evolving regulatory landscape in India is fostering AI and Deep Tech innovation. Initiatives like the National Deep Tech Start-up Policy (NDTSP) and the Next Generation Incubation Scheme (NGIS) are pivotal in providing funding, resources, and infrastructure, enabling startups to thrive in a supportive environment.
- Deep Tech vs. Regular Startups: Deep Tech startups, characterized by extensive R&D phases, differ significantly from regular startups focused on quicker market entry. This prolonged R&D phase unlocks exponential potential, offering transformative solutions with significant industry and societal impact.
- Role of Academic Institutions: Academic institutions are crucial in nurturing AI and Deep Tech ventures, providing a fertile ground for innovation through resources, expertise, and collaboration opportunities that transform scientific research into practical, market-ready solutions.
- Rapid Growth in AI & Deep Tech: India’s AI and Deep Tech landscape is burgeoning, with significant innovations across biotech, AI/ML, robotics, advanced materials, blockchain, and quantum computing. The vibrant ecosystem mirrors the e-commerce boom of the mid-2010s, signaling a promising future for AI and Deep Tech in India.
- Industry Impact: AI and Deep Tech are transforming various industries, including agriculture, e-commerce, consumer goods, automotive, energy, finance, healthcare, logistics, manufacturing, and pharmaceuticals.
Explore the Full Report: To delve into the detailed findings and insights of the “AI & DeepTech” report, download the full report here.
Commenting on the launch of the report, Mr. Aryaman Tandon, Managing Partner & Cofounder at Praxis Global Alliance, said, “Over the last decade, India’s technological advancements have undergone a significant shift. The AI disruption has touched almost every sector, from Biotech and Mechanics to Aerospace and E-commerce. With this report, we aim to highlight various investment opportunities and government initiatives driving the Deep Tech and AI landscape.”