6 days ago

Why India’s AI Startups are Chasing US Customers First

For a growing number of India’s artificial intelligence startups, the domestic market is no longer the first proving ground. Instead, they are building products in Bengaluru, hiring talent in India and heading almost immediately to the United States in search of customers.

That strategy is beginning to show results, according to Antler India, the venture capital firm behind an accelerator designed to help young companies break into the American market. Speaking at the firm’s annual showcase on Tuesday, Antler said nearly 80 percent of startups that have gone through its US-focused Embark programme have secured commercial traction in the United States, while about half have raised follow-on funding from global investors including Accel and Vertex.

The figures underscore a broader shift in India’s startup ecosystem, where founders increasingly see artificial intelligence as a borderless business and the United States as the world’s largest customer base rather than a distant expansion market.

“Building an AI-native company from India while targeting the US from day one is one of the biggest opportunities today,” said Nitin Sharma, a partner at Antler India. But he added that the path remains difficult, citing fierce competition, unfamiliar sales cycles and the challenge of establishing credibility in Silicon Valley.

To address those hurdles, Antler created Embark, a programme that temporarily relocates founders to San Francisco, where they meet prospective customers, refine product strategies and learn how to navigate the American technology market. Nearly 40 startups from seven countries have participated so far.

The programme draws on a network of more than 130 mentors, including executives from global technology companies, Bay Area entrepreneurs and venture investors, who advise founders on product development, fundraising and market entry.

The momentum extends beyond the US initiative, Antler executives said. Rajiv Shivatsa, another partner at the firm, said roughly 80 percent of startups that presented at Antler India’s last two investor showcase events went on to secure additional funding.

“The first six months of this year have been phenomenal,” he said. “Investor support has enabled many of our companies to raise follow-on capital and accelerate growth.”

Among the companies highlighted were Armory, which is developing artificial intelligence applications for India’s expanding defence sector; Infer, an AI software company serving insurance clients in the United States that has gained customers rapidly in recent months; and BazaarNow, which is building an e-commerce platform for consumers in smaller Indian cities.

The showcase featured nine early-stage companies working across artificial intelligence, enterprise software and deep technology, with products ranging from AI-driven freight logistics and grid-scale energy storage to self-learning AI systems, loan recovery automation, AI marketing tools for US small businesses and workplace productivity solutions.

Antler said it plans to open applications for the next Embark cohort in the coming months as it seeks to back more startups attempting a route that was once unusual but is increasingly becoming the norm: building in India while selling to the world.