Published on 1/4/2025 | 4 min read
“If you look at how large language models (LLMs) have evolved, their potential plateaus when they exhaust fresh training data. AI agents fill this gap by integrating external sources like databases, APIs, and real-time feeds,” explains Ramprakash Ramamoorthy, Director of AI Research at Zoho and ManageEngine.
Ramamoorthy believes this evolution represents a natural progression for AI, transcending geographical boundaries. “AI agents provide timeliness and context that static LLMs cannot deliver,” he adds.
Indian startups are leading this evolution, with Bengaluru-based Kogo AI standing out. Founded by Praveer Kochhar and Raj K. Gopalakrishnan, Kogo AI develops AI agents designed to enhance workflows and productivity. Recently, the company launched an AI agent store and is building agents capable of functioning like data scientists or business analysts.
“Foundational models have advanced, significantly reducing the costs of building AI agents,” Kochhar noted in a recent podcast. For instance, while early customer support AI agents cost around ₹50 per interaction, advancements have lowered this to a sustainable ₹2.5 per interaction.
Several Indian-founded startups are making significant strides in the AI agent space. Among them is Floworks, co-founded by Sudipta Biswas and Sarthak Shrivastava. As part of Y Combinator’s Winter 2023 cohort, Floworks focuses on developing AI agents to streamline sales functions.
Prominent players such as Sarvam AI, backed by PeakXV Partners and Khosla Ventures, and CoRover, supported by Venture Catalysts, are also exploring innovative applications of AI agents. These startups demonstrate how Indian founders are shaping the global AI agent ecosystem.
AI agents have become ubiquitous, particularly in sectors like sales, marketing, and finance, which benefit from established systems such as CRMs and ERPs. Ramamoorthy highlights that these departments can seamlessly integrate AI agents into existing data pipelines to maximize efficiency.
Several seasoned industry leaders have turned their focus to AI agents. Notably, CP Gurnani, co-founder of AlonOS and former CEO of Tech Mahindra, has championed the productivity potential of agentic AI. “Agentic AI is the software version of a personal robot. Each of us will have an AI agent that knows us intimately,” he shared on social media.
AlonOS, headquartered in Singapore and co-founded by Rahul Bhatia, provides AI-as-a-service and data engineering solutions. Recently, the company partnered with Indonesia’s telecom giant Indosat to advance AI sovereignty in the region, with a focus on the travel and hospitality sectors.
Meanwhile, RagaAI, founded by Gaurav Aggarwal, is carving its niche in AI testing. Drawing from his experience at NVIDIA and in autonomous mobility, Aggarwal has developed frameworks specifically for testing AI agents. “AI agents are evolving beyond tools to become collaborators, problem-solvers, and decision-makers,” he remarks.
The growing ecosystem of Indian AI startups is further bolstered by global tech players. For instance, leading database company Redis supports startups like Kore AI in powering virtual AI agents. Manvinder Singh, VP of AI Product Management at Redis, emphasizes India’s critical role in the future of agentic AI.
“The Indian tech ecosystem is uniquely positioned to drive agentic AI forward,” Singh asserts. This alignment of innovation and cost-effectiveness underscores the strategic importance of Indian startups in the AI landscape.
With AI agents rapidly becoming the norm, the focus is now on identifying the most impactful sectors for deployment. By enabling seamless integration into established workflows and providing context-rich, real-time insights, AI agents are set to redefine productivity across industries.
As Indian entrepreneurs continue to lead in building transformative AI solutions, the global AI agent market is poised for unprecedented growth. By 2030, their contributions will likely cement India’s position as a global powerhouse in the agentic AI revolution.