Overview

• Accel partners Prayank Swaroop and Shekhar Kirani stress that Indian AI founders must shift from a cautious “peacetime” mindset to a “wartime” growth model to avoid falling behind global competitors.
• Founders in India currently prioritize capital efficiency and serving a handful of local clients, contrasting with US peers who aggressively chase scale and revenue.
• With global AI sector funding reaching $368.5 billion in 2024, AI-first startups are commanding significantly higher valuations than traditional SaaS firms.
• Investors now expect AI-native companies to grow from early ARR to $50–100 million in revenue within 12–18 months to earn premium valuations.
• Accel warns that India’s AI startups still have an opening in application-layer solutions but must build globally relevant products and secure international capital early as competition intensifies.