Indian AI startups shift to US market seeking paid PoCs and faster deals

Indian AI startups are increasingly shifting focus to the US market in search of paid proofs of concept (PoCs) and faster deal closures.
Vaibhav Domkundwar, CEO of Better Capital, encapsulates the frustration: "AI founders finally skipping selling to Indian customers after doing PoCs after PoCs and then being requested for even more ‘free’ PoCs. There is a limit to this… Enough is enough."

The Indian market, described as a "tiny tech market" by Paras Chopra, founder of Lossfunk, often traps startups in a comfort zone where scaling becomes difficult. Many founders find themselves stuck in endless sales loops, where potential clients demand increasingly elaborate demos but fail to move forward with commercial agreements.

This has led to a growing trend of startups seeking opportunities in the US, where customers are perceived to be more willing to pay, quicker to make decisions, and more respectful of the time and technology offered. The US market offers a more lucrative environment for early-stage AI startups to monetize their innovations and scale their businesses.

The shift highlights broader challenges in the Indian AI ecosystem, where monetization and customer acquisition remain significant hurdles. Founders are now prioritizing markets that value their technology and offer faster returns on investment.

"Founders are now taking their talents elsewhere—mostly to the US, where customers are perceived to be more willing to pay, faster to decide, and more respectful of the time and tech being offered," the reports note.

This migration underscores the need for the Indian market to evolve its approach to AI adoption and startup engagement to retain homegrown innovation.

Indian AI startups are increasingly targeting the US market, seeking paid proofs of concept (PoCs) and quicker deal closures. Frustrated by endless free PoCs and slow Indian sales cycles, founders like Vaibhav Domkundwar and Paras Chopra highlight the US as a more lucrative and scalable market.