Balasubramanian predicts a promising market for AI infrastructure.

Hari Balasubramanian, a member of the Indian Angel Network and an angel investor in various ventures including Wow! Momo, Box8, FabAlley, and Spiny, among others, sees an optimistic outlook for startups involved in building local AI infrastructure in India. He believes there will be significant market potential for such products, attracting interest from investors.

Speaking at the Startup Mahakumbh event, Balasubramanian highlighted the opportunity to reduce processing costs and develop software layers around graphics processing units (GPUs) for AI applications. He emphasized that substantial investments are being directed towards AI training and GPU utilization in the industry.

Regarding investment opportunities, Balasubramanian mentioned that the current subdued funding environment presents a favorable landscape for angel investors. He noted that angel investors typically have a longer investment horizon of seven to ten years.

While early-stage investments are advantageous in the current scenario, Balasubramanian acknowledged challenges for late-stage startups to demonstrate significant traction and a clear path to profitability to secure investor commitments. He stressed the importance of profitability for mature companies with established product-market fit, contrasting them with research-oriented startups like AI and deep tech ventures, which are not expected to be profitable in their initial stages.

Aside from AI, Balasubramanian expressed optimism towards emerging food companies and fashion brands targeting Gen-Z consumers in India. He emphasized the diversity of the Indian market, suggesting that multiple food brands can coexist successfully, given the vast and varied regional preferences across the country.