Sarvam and Krutrim Capture 68% of Indic AI Funding as Sector Hits $687 Million, Tracxn Reports

India's artificial intelligence sector has raised $687 million in funding, with two startups—Sarvam and Krutrim—accounting for 68% of that total, according to data from market intelligence platform Tracxn. The concentration of capital in these two companies underscores their dominant position in the country's fast-growing AI ecosystem. In 2026 alone, Indic AI firms attracted $399 million, with Sarvam leading the pack at an 87% share of that year's funding. Krutrim, founded by entrepreneur Bhavish Aggarwal, has also emerged as a major player, focusing on large language models tailored for Indian languages. The figures reflect a broader surge in investor confidence in India's AI potential, driven by the need for localized solutions and the country's vast digital user base. As global tech giants and domestic players compete for talent and market share, the funding landscape signals a maturing sector where a few well-capitalized leaders may set the pace. The data from Tracxn highlights how strategic bets on foundational AI infrastructure are shaping the next phase of India's tech growth, with implications for innovation, job creation, and digital sovereignty.