Startups of Deeptech — An Indian Perspective
Electricity is all around us. Two decades from now, we would probably safely add the term ‘Artificial Intelligence’ to the previous sentence. We are currently in an era of rising AI-based technologies. This article is a brief analysis of what lies in store for startups working in this exciting domain.
Firstly, what is deep tech? It is a term collectively referring to cutting-edge technologies today, from Artificial Intelligence, Internet of Things, Blockchain, Machine Learning, Computer Vision, Virtual Reality and more. Deep tech is fundamentally a connection of different types of technologies to come up with a solution that has significant improvement over other products available in the market in terms of experience, performance, and impact.
So how important is deep tech today? As Paytm CEO Vijay Shekhar once quoted, It is almost impossible to scale any startup or even a business today without deep tech. There has never been a more exciting time for India’s deep tech startup ecosystem which is at a tipping point. A recent report suggests that India is the third-largest AI startup ecosystem with Bengaluru a leading hub for deep tech startups, followed by Hyderabad. Despite the rising dialogue around deep tech, the majority are still unaware of how these start-ups differ from the technology companies and there lies the scope to innovate.
Companies like Ratan Tata-backed Niki.AI and Sequoia-backed MadStreetDen have gained momentum and traction over the last few years, while tech giants Amazon and Flipkart have invested heavily in machine learning and AI to make the customer experience more personal and impressive.
Investors are willing to go the distance to fund these startups. Another interesting aspect of this particular domain is that Tech giants, MNC’s as well established-startups themselves are looking to acquire startups that use deeptech to aid businesses through critical decision-making skills.
The latest testimonial to Bengaluru-based AI startup Pikup.ai, which was acquired by Ola. Furthermore, Cab aggregator Ola stated that it is looking to invest in early-stage businesses, and further acquire or acquihire across technologies like AI, machine learning, computer vision, and other emerging areas of deep tech.
According to Business Standard, over 120 IoT startups have received over $169 Mn funding since 2006 in India. Large investors that have created IoT focused investment funds are Tiger Global Management, Blume Ventures, and Qualcomm Ventures. In addition, Blume Ventures, one of the most active VCs in India, has recently announced plans to launch a $100 Mn Investment Fund III that will also have a focus on IoT startups.
Startups such as Smartron, co-founded by Soft Machines CEO has raised over $40 mn in pre-series funding itself. Another startup CarSense, that provides car diagnostics services uses state-of-the-art IoT intelligence to provide car security and car service is a part of another specific industry that is valued at $31.5 bn globally today.
As the Deep-tech domain continues to grow and find its application in every industry, It is high time an Entrepreneur knows how to make the best of these incredible technologies and by its increasing disruption potential with each passing day, it wouldn’t be a bad idea to create a startup in this domain.
