India's AI Boom: VCs Demand Real Innovation Over Hype, Funding Gaps Emerge

• Venture capitalists are shifting focus from superficial AI plays to genuine innovation, prioritizing startups with real intellectual property.
• Rahul Agarwalla of SenseAI Partners emphasizes that startups must add value to justify their existence, moving beyond simply building on existing models.
• Vikram Gupta of IvyCap Ventures highlights a significant funding gap for deep tech at Series B, despite ample early-stage capital, potentially hindering founders.
• Investors view AI as a structural shift, with Ritesh Banglani of Stellaris noting its non-deterministic nature could lead AI-native firms to replace traditional enterprise software.
• Karan Mittal of Caret Capital warns against neglecting hardware and infrastructure, despite GenAI attracting most capital, as India's AI ambition requires long-term execution and funding.