Indian AI founders shift to the US as VCs push for global expansion

Indian AI startups are increasingly moving operations from Bengaluru to San Francisco as founders seek access to more enterprise clients, larger pools of VC, and a much bigger software market.

Nexus Venture Partners, an early Indian VC firm with offices in Mumbai, Bengaluru, and Menlo Park, is encouraging its portfolio companies to establish US operations early to stay closer to customers.

The firm has invested in over 10 companies this year, including Metaforms, Cognida AI, and Neysa, and is focusing on both infrastructure and application layers of AI.

Nexus says that US software market size and funding availability are major reasons for the shift, allowing startups to expand internationally soon after raising early rounds.

Gandhi from Nexus noted that Indian companies retain advantages such as cost-effective talent and strong customer support, but cautioned that global players are likely to dominate India’s consumer AI market.

Nexus raised a US$700 million fund in 2023 and now completes about 20 deals annually across India and the US.

🔗 Source: YourStory

🧠 Food for thought

Implications, context, and why it matters.

India’s AI startup migration meets rising local funding

AI companies in India have raised $665 million in 2025, a 46% year-over-year gain 1. Many founders move within months of seed rounds 1. About 90% of capital goes to applications (end-user software) over infrastructure (core platforms, compute and developer tools) 2 1. Teams often stop at the minimum viable product (MVP) stage due to localization hurdles plus integration gaps 2 1.
Claims that firms hit a couple of hundred million dollars in ARR within 12 to 24 months lack backing in the cited material, and sources describe scaling hurdles for Indian AI companies 1.
About 67% of Indian AI firms build applications 1. Neysa raised $50 million 3 and QpiAI, an Indian deep-tech firm building AI and quantum modeling tools, raised $43.3 million 4. These rounds show capital does reach infrastructure plays when tech and market fit align.

Service firms can win near-term work from Indian AI ventures eyeing the US

Go-to-market (GTM) advisors can target the 93% of Google AI First Accelerator alumni (a Google program that mentors and supports AI startups) building for global markets 1. These teams need entry plans, customer discovery and sales playbooks.
Compliance shops have an opening, because US buyers often ask for System and Organization Controls 2 (SOC 2), International Organization for Standardization (ISO) certifications, plus data privacy frameworks that relocating founders must secure.
Employer of Record (EOR) plus Professional Employer Organization (PEO) firms can help with US hiring as teams set up operations 2. Outbound sales agencies can supply sales development representative (SDR) capacity for cost-aware firms selling into US enterprises, where calls cost Rs 8–9 per minute versus India’s Rs 4 per minute 2.