Microsoft-backed AI4Bharat set to raise $12 million funding from Peak XV, Lightspeed – sources
AI4Bharat, a start-up supported by Microsoft and backed by the Indian government, is reportedly raising $12 million in a seed funding round from venture capital firms Peak XV and Lightspeed Venture. The funding will be utilized to further develop AI-powered chatbots specifically designed for Indian languages. This larger-than-usual seed funding round highlights the increasing interest in generative AI following the success of OpenAI’s ChatGPT in engaging in human-like conversations.
Typically, seed funding rounds range from $1 million to $2 million, but the significant amount being raised by AI4 Bharat reflects the confidence and potential in developing generative AI technologies. AI4Bharat has been focusing on developing AI models for speech recognition and translation. With this new funding, the company aims to enhance its capabilities in building chatbots powered by artificial intelligence that can effectively communicate in Indian languages.
The involvement of Microsoft and the Indian government further emphasizes the importance of AI4 Bharat’s work in leveraging artificial intelligence to address language-related challenges in India. The development of AI models for speech recognition, translation, and chatbots has the potential to bridge language barriers and enable wider access to technology and information for Indian users.
As the demand for AI-powered language solutions continues to grow, the investment from Peak XV and Lightspeed Venture signifies their confidence in AI4Bharat’s vision and the potential impact of their technology.
AI4 Bharat’s recent unveiling of a mobile assistant to provide information on government schemes in multiple languages demonstrates its commitment to leveraging AI for societal benefits. The funding it is raising from Peak XV and Lightspeed Venture will be utilized to enhance its AI models by training them on more data, which is typically a costly undertaking for AI ventures. Additionally, AI4Bharat plans to collaborate with government agencies to develop conversational bots, enabling more interactive and user-friendly access to government information and services.
As of now, AI4Bharat, Peak XV, and Lightspeed Venture have not responded to Reuters’ requests for comment. However, the investment from these venture capital firms indicates their confidence in AI4Bharat’s mission and the potential of its AI-powered language solutions to address key societal challenges in India.
By expanding access to government scheme information and creating conversational bots, AI4Bharat aims to make essential data more accessible to diverse communities and contribute to digital inclusion and empowerment.
Training AI models on extensive data sets and collaborating with government agencies to develop conversational bots will require substantial resources and expertise. However, with the support of Microsoft, the Indian government, and venture capital firms, AI4Bharat is well-positioned to advance its AI technologies and make a positive impact on language accessibility and information dissemination in India.
AI4 Bharat’s origin at the Indian Institute of Technology in Madras, along with the support of Infosys co-founder Nandan Nilekani’s grant, highlights the strong foundation and backing behind the company’s initiatives. In addition to its focus on developing AI models and chatbots for Indian languages, AI4Bharat is collaborating with the National Payments Corporation of India to create voice-based payment systems for feature phones.
The investment from Peak XV Partners is one of the initial investments made by the firm since rebranding from Sequoia Capital India and SEA. Following a split with its U.S.-based parent fund, Peak XV Partners is demonstrating its commitment to supporting innovative ventures like AI4 Bharat. This investment not only reflects confidence in AI4 Bharat’s potential but also underscores the growing interest in India’s AI ecosystem and the significant role it plays in driving technological advancements.
By partnering with the National Payments Corporation of India, AI4Bharat aims to explore the possibilities of voice-based payments on feature phones, which can enhance financial inclusion and enable easier access to digital transactions for a wider population in India. This aligns with the country’s ongoing efforts to promote a digital economy and reduce barriers to financial services.
Overall, AI4Bharat’s collaborations, support from notable entities like Nandan Nilekani and Peak XV Partners, and its focus on addressing language-related challenges and expanding digital accessibility in India position the company as a key player in the country’s AI landscape.Peak XV’s portfolio of AI investments, including AI Rudder, Mad Street Den, and Insider, showcases its focus on supporting innovative companies in the AI space.
These investments highlight the increasing interest and potential in AI-related technologies across various sectors.
The growing popularity of generative AI, fueled by advancements like OpenAI’s ChatGPT, has captured the attention of both consumers and businesses. This increased awareness and demand for AI solutions have contributed to the ability of related start-ups to attract funding, even in a challenging economic climate where investment opportunities may be limited for other companies.
The data from Venture Intelligence indicates that Indian AI start-ups have successfully raised significant funding. In 2021 alone, these start-ups have already raised $583 million as of June, with a total of $2.45 billion raised in the previous year. This demonstrates the confidence of investors in the potential of Indian AI companies and their ability to drive innovation and address market needs.
Overall, the investments in AI start-ups, including those supported by Peak XV, reflect the growing recognition of AI’s transformative power and the value it can bring to various industries. As AI advances, we can expect further investments and developments in the Indian AI ecosystem.
