Surge Selects 10 AI and Deep Tech Startups for Its Newest Cohort

AI and deep technologies are taking centre stage in the latest early-stage cohort from Peak XV Partners, the largest VC focused on India and Southeast Asia. With 10 AI and deep tech startups, the Surge programme, known for its influential early-stage initiatives, reveals a strategic emphasis on cutting-edge technologies. The unveiling of these 10 AI and deep tech startups coincides with a global sentiment suggesting a lack of depth in India’s AI startup space.

Surge’s Goal in Navigating the Global Landscape and Evolving Ecosystem

The backdrop of this development involves a comparison with Y Combinator’s recent batch of more than 200 startups, of which more than half focused on AI. Despite the considerable size of the cohort, fewer than 10 AI and deep tech startups were India-based, sparking speculation about a potential divergence between the venture firm and India’s startup ecosystem.

When talking about the 10 AI and deep tech startups, Shailendra Singh, managing director of Peak XV, expressed the desire for more AI startups while highlighting the intriguing opportunities they have identified and invested in. He emphasised the evolving landscape, noting India’s increasing expertise and market fertility over the past 18 years.

The Surge 09 cohort comprises startups addressing a diverse range of challenges, from identifying early brain decline to transforming processor design and scaling the hydrogen economy. Multiple founders in this cohort hold PHDs and possess international work experience, a notable shift that Singh believes would have been unlikely five years ago.

10 AI and Deep Tech Startups Included in Surge 09 Cohort’s

The Surge 09 cohort’s 10 AI and deep tech startups include:

• Dozer is an open-source data infrastructure platform that assists data scientists and engineers in building highly scalable, real-time APIs. 
• Elivaas is a management platform for villas and luxury apartments, enabling owners to monetise, oversee, and maintain their vacation homes in India. 
• Ethereal Machines operates in advanced manufacturing, specialising in precision engineering components via multi-axis computer numerical control machines. 
• Horizon Quantum Computing develops software development tools designed to unlock the capabilities of quantum computing hardware. 
• InCore is a fabless semiconductor startup building RISC-V-based processor solutions for various industries. 
• Mercu is an employee engagement platform that facilitates the hiring, training, and engagement of frontline teams within companies.
• Mindgrove designs cost-efficient, scalable microprocessor technology, combining all electronic components on a single chip.
• Neurowyzr operates in the healthcare sector, specialising in developing advanced technologies to mitigate early signs of brain decline.
• Newtrace is a climate tech startup attempting to manufacture innovative electrolyzers for the efficient and affordable production of green hydrogen. 
• PixAI is an AI-powered anime art generator that provides users with tools and templates for creating personalised anime art.
• Relevance AI is a machine learning startup attempting to help companies automate workflows through a no-code AI workforce.
• ZeroK is an AI platform that assists developers in faster troubleshooting of production incidents by performing intelligent checks.

Additionally, there is a stealth-mode startup operating an AI platform aimed at boosting software team productivity with contextual answers tailored to their codebases.

Also Read: 8 Amazing AI Startups Leading the Way in 2023

The Evolution and Commitment of Peak XV Partners in Venture Capital

Peak XV Partners, formerly recognised as Sequoia Capital India and SEA, emerges as a prominent venture capital and growth investing firm with an expansive investment scope spanning India, Southeast Asia, and beyond. The adoption of their new name, Peak XV, pronounced Peak Fifteen, carries historical greatness, mirroring the resilience of its founders in the face of challenges.

In their 17-year journey within the region, Peak XV has evolved into a managerial force overseeing more than $9 billion in capital across 13 funds. They have strategically invested in over 400 companies, with around 40 of them achieving revenues exceeding $100 million. Operating from five offices in Bangalore, Mumbai, Delhi, Singapore, and Dubai, their diverse team comprises professionals from 14 different nationalities. Beyond the investment team, the squad of over 60 operators specialises in human capital, strategic development, marketing, public policy, portfolio finance, and technology and product, collectively working with portfolio companies.

The collaborative approach involves working hand in hand with founders to help them actualize their ambitions. They distil their accumulated knowledge and offer it to founders through tailored advice, support, and community-based programmes like Surge, Spark, Pathfinders, Pitstop, Build, and Guild. The aspiration of Peak XV Partners is to be cherished partners for audacious founders aiming to disrupt the status quo and construct enduring companies for the future.

Also Read: French AI Entrepreneurs Create a Vibrant Startup Ecosystem

Surge’s Impact, Competing Landscapes, and Peak XV’s Global Expansion

Surge, completing five years in early 2024, stands out as the most influential early-stage investor in India and Southeast Asia. The programme, which invites select investors to evaluate and participate in funding startups, has backed over 140 firms to date, collectively raising more than $2 billion in follow-on funding. Despite the growing competition among VC funds attempting similar programmes, Singh sees this as beneficial for founders and the ecosystem. The measured portfolio size for each batch allows Peak XV to engage closely with founders.

Decoding the 9th cohort of Peak XV’s Surge: 💡

Surge launched its ninth cohort focused on early-stage startups featuring 32 founders across 13 startups.

The Indian startups on the list are Ethereal Machines, Elivaas, Incore, Mindgrove, Newtrace, and ZeroK. pic.twitter.com/choonvptdH

— Kunal Manchanda (@Kunal_POV) November 30, 2023

The new cohort arrives as other VC funds in India attempt to build their own versions of Surge programmes to identify 10 AI and deep tech startups like the ones mentioned before. This competitive landscape aligns with Peak XV’s focus on fostering innovation in advanced technologies while contributing to the growth and global expansion of startups in the region. Following the split from Sequoia U.S., the new fund, the first of its kind for Peak XV, features two Australian startups. Singh highlights the applicability of their skill set to help Australian startups build global businesses.

The Surge 09 cohort, including the 10 AI and deep tech startups, underscores Peak XV’s commitment to advancing technological innovation and supporting startups across India, Southeast Asia, and now Australia. The convergence of AI and deep technologies signals a strategic alignment with the evolving needs of the global startup landscape.