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AI-native startups new darlings for VC funds as SaaS slips

June 11, 2025

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Hindustan Times Chandigarh

India's venture capital funding has started shifting to startups with core products built on artificial intelligence (AI) from ventures that offer cloud-based software applications, marking a deeper reset in investor priorities.

- Priyamvada C. and Mansi Verma

BENGALURU/MUMBAI:

Between January and 4 June, AI-native startups raised $454 million across 65 deals, surpassing software as a service (SaaS) firms, which drew $432 million over 52 deals, according to data from Venture Intelligence. Some overlap exists as SaaS companies adopt AI features.

"AI-led startups are commanding 3-4x valuation premiums over traditional SaaS businesses, thanks to their potential for faster scalability and deeper, more transformative use cases," said Abhinav Chaturvedi, partner at Accel.

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