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News on Medial
AI Startups shun domestic market
Inshorts
·
2m ago
Medial
India’s AI startups are avoiding local clients due to repeated demands for unpaid Proof of Concepts (PoCs). The “Skip India Movement” sees firms pivot to global markets like the US and EU, where innovation is valued and pilots are funded. This trend risks domestic AI growth unless Indian corporates adopt fairer engagement practices.
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Antler’s founder on its vertical AI bet in Southeast Asia
TechCrunch
·
1y ago
Medial
Singapore-based venture capital firm Antler has invested $5.1m in 37 vertical AI startups in Southeast Asia. Antler's co-founder and managing partner, Jussi Salovaara, believes that founders in Southeast Asia are focusing on solving practical problems in different industries rather than pursuing horizontal AI. Each country in the region is seeing different trends within verticalized AI, with Vietnam's founders prioritising domestic markets, while Indonesian startups focus on their large domestic market rather than international expansion. Antler's investments include platforms for cross-border logistics, market research automation, and digitising project claims in the construction industry.
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Unicorn sightings become rare as VCs shun that leap of faith
Economic Times
·
1y ago
Medial
Early-stage startups are struggling to attract "leap of faith capital" as investors focus on late-stage companies. While early-stage deals are happening, big investors like SoftBank and Tiger Global are more inclined towards established startups and potential IPOs. Only two startups have become unicorns this year, compared to the previous year's total of two. The investment process for new firms is still lengthy, and funding is primarily limited to fast-growing and profitable companies. However, there is optimism that ventures fixing their economics will be able to raise significant capital in the future.
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Local SaaS firms under the thumb to retool for artificial intelligence
Economic Times
·
1y ago
Medial
Indian software startups are under pressure to integrate artificial intelligence (AI) into their products and business models to attract new investments. Investors expect a "mass retooling" of companies in the SaaS market to leverage AI for product enhancement. However, the domestic AI talent shortage and expensive open models pose challenges for Indian SaaS players. Saturation in existing software segments and increasing consolidation in 2024 are anticipated as differentiation becomes more difficult. Smaller startups face the brunt of retooling as they lack a strong AI talent base and need to show significant revenue to secure funding.
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Two Chinese chip firms plan $1.7 billion IPOs, bet US export curbs to spur growth - The Economic Times
Economic Times
·
1m ago
Medial
Two Chinese AI chip startups, Moore Threads and MetaX, aim to raise a combined 12 billion yuan ($1.65 billion) through IPOs on Shanghai's STAR Market. The companies are capitalizing on U.S. export curbs, hoping to boost local demand for their GPUs. Despite recent losses due to heavy R&D, both firms see domestic growth opportunities as the U.S. intensifies chip restrictions. Founded by ex-employees of major U.S. chip firms, they compete with domestic giants like Huawei.
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From 66 to 4: Why Y Combinator is backing fewer Indian startups in 2024 - The Economic Times
Economic Times
·
1m ago
Medial
Y Combinator's selection of Indian startups has significantly decreased, with only four in 2024 compared to 66 in 2021. This decline is due to Y Combinator's US incorporation requirement and the growing appeal of domestic IPOs. Indian startups increasingly focus on local funding and capital markets, aided by regulatory support. Y Combinator's current interest in AI-focused startups also limits Indian participation, as domestic capital proliferates through diverse funding avenues.
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UP Govt Aims To Integrate AI In Farming, Bolster Agritech Startups
Inc42
·
1y ago
Medial
The state government of Uttar Pradesh in India is planning to host a farming summit called 'Krishi Bharat' in November. The summit aims to boost investment in local agritech startups and integrate artificial intelligence (AI) into farming practices. Global venture capitalists will be invited to participate, with a goal of spurring investments in the domestic agriculture value chain. India's agritech startups are projected to have a total market opportunity of $24 billion by 2025, according to a report by EY.
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Accel eyes more IPOs in ‘standout’ market India this year
Economic Times
·
7m ago
Medial
Accel is planning more IPOs in India this year, excited by opportunities in the Indian market, as global LPs see better exits and DPI. Having closed an eighth India-focused fund of $650 million, Accel is fostering startups like Swiggy and Flipkart. With increased global and domestic capital interest, they focus on aligning valuations with growth. Their investments span sectors like AI, fintech, and quick commerce, alongside traditional consumer internet and B2B commerce, leveraging emerging deep-tech and AI innovations.
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Indian cybersecurity startups poised for strong growth amid rising global spend: Accel's Prayank Swaroop
Economic Times
·
1y ago
Medial
India's cybersecurity market has seen a growth of 25% annually since 2019, reaching over $6 billion in 2023. It is projected to continue expanding, with global spending estimated to touch $200 billion this year. Indian cybersecurity startups are expected to experience steady growth due to increased spending in the domestic market. Key highlights from the Accel Cybersecurity Summit 2024 indicate that Indian startups have the potential to make a global impact. Cyber attacks have risen by 71% YoY, making data security and privacy crucial concerns. The use of generative AI in cybersecurity is considered a gamechanger, enhancing operational efficiency and aiding in early vulnerability detection.
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The Bay Area stamp of approval: Why India’s AI startups need brand building to win trust? - BusinessToday
Business Today
·
2m ago
Medial
The initial hype surrounding AI tools has been tempered by the realization that while AI can significantly boost efficiency, many solutions require refinement for complex real-world applications. Indian AI startups face trust challenges from domestic enterprises, often needing validation from Western markets, particularly the Bay Area, to be considered credible. Despite potentially superior local solutions, Indian enterprises prefer reputed global options. Startups need to establish brand equity and demonstrate consistent performance to gain trust.
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Enough Opportunities In India, No Plans For Overseas Expansion: Dream11’s Harsh Jain
Inc42
·
1y ago
Medial
Gaming unicorn Dream11's CEO, Harsh Jain, revealed that the company's focus remains on the Indian market, with no plans for global expansion. Despite not allowing non-Indians to participate, Dream11 has amassed a user base of 22 Cr. Jain encouraged other startup founders to prioritize the domestic market before venturing internationally. He also mentioned that Dream11 is leveraging artificial intelligence (AI) to enhance its offerings and operations in the esports sector. The comments come amid government support for homegrown startups. The Indian fantasy sports industry is projected to reach INR 25,240 Cr by 2026-27.
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