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Generative AI Tracker: Tech Industry Activity in Q2FY2025

Nasscom is releasing the latest edition of its Generative AI Tracker: Tech Industry Activity offering a comprehensive analysis of key developments from July to September 2024. This quarter’s insights focus is on announcements from a curated selection of publicly listed Indian technology leaders, spotlighting the Generative AI platform offerings by select tech service providers. Also, the report delves into Global Generative AI (GenAI) activity including startup funding, deal trends, GenAI impact and emerging trends.
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Key Findings

Global Gen AI Startups

  • ~2.3X drop in global GenAI startup funding in Q2FY2025 from Q1FY2025 with record high 206 funding rounds of the past 5 quarters. 
  • 4 new unicorns emerged in Q2FY2025 accounting for ~20% of the total funding in the quarter 
  • Big-ticket deals above $150 Mn grew by 1.8X q-o-q constituted 80% of total funding in the quarter
Indian Gen AI Startups

  • ~6.3X increase in Indian Gen AI startup investment in Q2FY2025 from Q1FY2025 
  • Funding rounds grew by 3X+ in Q2FY2025, after two consecutively subdued quarters 
  • 77% of funding rounds were either angel or seed investments
Tech Industry Activity

  • Tepid overall activity in the tech industry after a strong Q1, but with rise in partnerships and revenue pipeline reporting. 
  • AI skilling and talent development moves up the curve to more advanced AI upskilling, from base GenAI literacy.
Industry Showcase

  • Defining GenAI platforms, offerings and benefits with key features of current GenAI platforms 
  • Illustrative list of GenAI platforms launched since 2023 and select showcase of GenAI platforms by major tech service providers

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