**Prosus Targets AI Startups in India’s Application Layer**
Dutch investment powerhouse Prosus NV is focusing its venture capital efforts in India on a particular segment of artificial intelligence startups—those creating user-facing AI tools and services. In its recent annual report, Prosus highlighted that the next significant value from AI will emerge from the application layer, where AI is integrated into business workflows, essentially identifying a niche for AI-first startups.
Recently, Prosus made investments in two Indian AI startups that align with this application layer focus: Arivihan, an AI-driven learning platform, and CodeKarma, a productivity tool designed for software developers. Dhruv Gupta, an investor at Prosus, emphasized the vast potential of the Indian market, noting that there are over 200 million annual shoppers and 500 million internet users, creating a unique environment for scalable AI solutions.
In July, Prosus led a $4.2 million pre-Series A funding round for Arivihan, alongside Accel and GSF Ventures. This marked Prosus’s first investment in the Indian edtech sector since it wrote off its $530 million investment in Byju’s last June. Arivihan, based in Indore, offers coaching for school students through a mobile app, targeting tier-2 cities and beyond.
Additionally, last week, Prosus, in collaboration with Accel and Xeed Ventures, co-led a $2.5 million pre-seed funding round for Bengaluru-based CodeKarma, with participation from AI-focused investors like SenseAI Ventures and Stargazer Ventures.
Prosus is strategically shifting its focus to the AI application layer, which encompasses startups developing tools and services that integrate into real-world workflows, from educational settings to corporate environments. The firm recognizes India’s extensive internet user base, linguistic diversity, and local challenges as fertile ground for developing scalable, globally relevant AI solutions. Of the $400 million Prosus allocated globally in FY25, $88 million was directed towards AI investments, with India being a key focus area, supporting startups like Arivihan and CodeKarma.
With over $152 billion in assets as of 2024, Prosus has also invested in US-based Ema Unlimited, a universal AI employee startup founded by Surojit Chatterjee, who is also on the board of Meesho and previously held a senior position at Flipkart. Other notable investments include Bengaluru-based SpotDraft, which automates contract lifecycle management, and global AI application investments such as Qeen.ai and Nexad.
As the demand for application-layer AI solutions grows, other venture capital firms like Accel, Lightspeed India, and PeakXV Partners are also exploring opportunities in this space, recognizing the diverse cultural and linguistic landscape of India as a testing ground for innovative AI models.
**FAQ**
**What is Prosus’s focus in the Indian AI market?**
Prosus is concentrating on investing in AI startups that develop user-facing tools and services, particularly those that integrate AI into business workflows.