MeitY, IVCA Mobilise ₹500 Cr VC Commitments For AI Startups
•February 17, 2026
0
Companies Mentioned
Why It Matters
The ₹500 crore pledge bridges policy support and private capital, accelerating scalable AI deployments across Indian enterprises and public services, while the anticipated $200 billion investment underscores the country's ambition to become a global AI hub.
Key Takeaways
- •₹500 Cr pledged by 16 IVCA funds for AI startups
- •Peak XV funded five diverse AI ventures at PitchFest
- •Government to order 20,000 GPUs for national AI compute
- •AI strategy emphasizes real‑world deployment and public value
- •Projected $200 Bn AI investment over next two years
Pulse Analysis
The Indian government has placed artificial intelligence at the core of its economic roadmap, with the Ministry of Electronics and Information Technology (MeitY) spearheading initiatives that blend regulatory guidance and financial stimulus. The recent India AI Impact Summit 2026 served as a showcase for this strategy, bringing together policymakers, venture capitalists, and founders to align on a shared vision of responsible, deployment‑ready AI. By articulating a clear demand for real‑world applications, MeitY aims to transform AI from a research curiosity into a productivity engine for sectors ranging from manufacturing to public health.
During the summit’s Impact AI PitchFest, sixteen IVCA member funds collectively committed ₹500 crore to nurture high‑potential AI startups, signaling robust investor confidence in the market’s talent pool. The roster of backers—3one4 Capital, Accel, Antler, Prosus, among others—covers a spectrum of investment theses, from foundational model development to vertical‑specific solutions. Notably, Peak XV announced funding for five startups that illustrate the shift toward decision‑making tools, workflow automation, and friction‑reduction technologies, including vernacular entertainment, talent intelligence, AI‑native workspaces, interview automation, and live‑commerce platforms.
Complementing the capital influx, the government’s pledge to purchase 20,000 GPUs will expand India’s compute capacity, a critical bottleneck for training large language models and other data‑intensive AI workloads. Coupled with a projected $200 billion inflow over the next two years, these measures are designed to position India as a competitive AI hub that can attract both domestic and foreign talent. For enterprises, the convergence of funding, policy support, and infrastructure promises faster adoption cycles, while investors stand to benefit from early exposure to scalable, responsible AI ventures poised for global expansion.
MeitY, IVCA Mobilise ₹500 Cr VC Commitments For AI Startups
The Ministry of Electronics and Information Technology (MeitY) and the Indian Venture and Alternate Capital Association (IVCA) have mobilised ₹500 Cr in VC commitments for Indian AI startups at the ‘India AI Impact Summit 2026’ in New Delhi.
The announcement was made during the Impact AI PitchFest, where 31 AI-native startups showcased their products to investors.
Sixteen IVCA member funds collectively committed ₹500 Cr to support high-potential AI startups. The participating investors included 3one4 Capital, 888VC, Accel, Ankur Capital, Antler, Boundless Ventures, Capital A, Chiratae Ventures, Dallas Venture Capital, Inflection Point Ventures, Mount Growth Fund, Peak XV Partners, Piper Serica, Prosus, Seafund, and SenseAI Ventures.
The capital is aimed at supporting deployable AI solutions across enterprise and public-impact sectors.
Peak XV Backs Five AI Startups
Separately, Peak XV said it has backed over five early-stage AI startups that showcased their products and services at the PitchFest. Companion Labs, Kello, Memfold AI, Round1 and Zoop are the five startups that bagged funding.
The VC firm said that the focus has shifted beyond basic tools and to startups that guide decisions, automate workflows and reduce friction in everyday work and life.
The five startups operate across different segments. While Companion Labs is building vernacular AI-led entertainment experiences, Kello is developing a hiring and career intelligence platform and claims to have mapped over 3.2 Cr professionals.
While Memfold AI is building AI-native workspaces for knowledge workers, Round1 runs AI-led recruitment interviews and conducts over 500 interviews a day. Zoop is building an AI-powered live commerce marketplace for offline sellers.
Focus On Scalable, Responsible AI
At the Summit, MeitY officials said that India’s AI strategy is focused on real-world deployment and public value. IVCA leaders said the ₹500 Cr commitment reflects investor confidence in Indian AI founders and signals deeper alignment between policy and capital.
Earlier today, IT minister Ashwini Vaishnaw announced that in the next two years, about $200 Bn would be poured into the Indian AI ecosystem.
Vaishnaw also announced that the union government will place orders for 20,000 GPUs soon to strengthen the country’s AI infrastructure. The move is aimed at building large-scale compute capacity in India and supporting startups, researchers and enterprises developing AI models and applications.
The India AI Impact Summit 2026 is being held at Bharat Mandapam in New Delhi and will continue through the week, bringing together policymakers, founders and investors to shape the next phase of India’s AI ecosystem.
The post MeitY, IVCA Mobilise ₹500 Cr VC Commitments For AI Startups appeared first on Inc42 Media.
0
Comments
Want to join the conversation?
Loading comments...