CoRover Secures $4M to Scale BharatGPT and Expand AI Solutions

CoRover, the Bengaluru-based AI startup and creator of BharatGPT, has raised $4 million (approx. INR 33.4 crore) in a Series A funding round. Led by Venture Catalysts, the round included participation from CanBank Venture Capital Fund (CVCFL), IIM Calcutta Innovation Park, IIIT Delhi (iHub Anubhuti IIITD Foundation), Cogniphy LLC, Karekeba Ventures, and Lead Angels. This latest funding will help CoRover expand its language model-based conversational AI solutions, build its team of AI experts, and scale its market strategy.

Scaling Conversational AI Chatbots with BharatGPT

CoRover is best known for its flagship large language model (LLM) platform BharatGPT, designed to offer conversational AI chatbots tailored for enterprises, government bodies, and consumers. These AI solutions are transforming customer interactions by providing secure, efficient, and scalable chatbots that can handle complex queries. As the demand for GPT-powered AI chatbots continues to grow, CoRover aims to strengthen its position in India's rapidly expanding AI market.

With more than 900 potential leads and a focus on converting these into clients, CoRover has realized the need for a dedicated sales team. Up until now, the company has largely relied on inbound channels for client acquisition. However, with fresh capital from this funding round, CoRover plans to enhance its sales infrastructure, scale its operations, and ensure faster conversion of deals.

Profitability and Focus on Scalability

Despite being profitable for the past three years, CoRover has maintained a modest revenue. Founder and CEO Ankush Sabharwal explained that while profitability has been consistent, the company now aims to prioritize growth and scaling its operations. With its platform technology already established and a strong client base, CoRover will now concentrate on improving the speed and efficiency of its implementations and onboarding new clients.

The company is also exploring new revenue streams to diversify its business. These include subscription-based models, ad-based revenue, and transaction fees, which will cater to its B2G, B2B, B2B2C, and B2C customers. This move positions CoRover to capitalize on the rapidly growing demand for generative AI (GenAI) solutions in India, a market that is expected to reach $17 billion by 2030, according to a recent report by Inc42.

Major Products and Key Clients

CoRover has successfully developed several products that have been widely adopted by government entities and private enterprises alike. Some of its most notable offerings include:

BharatGPT: A large language model designed to power secure, conversational AI chatbots.

CoroAssist: An AI-based copilot for enterprises that ensures efficient customer service.

eSevak: A conversational grievance management system for citizens.

AskDISHA: A chatbot used by Indian Railways and IRCTC to assist travelers.

Ask PAi: A customer support chatbot deployed at NPCI (National Payments Corporation of India).

AskMitra: A solution used by LIC (Life Insurance Corporation).

Chetna: A chatbot service developed for Delhi Metro Rail Corporation (DMRC).

SEVA: A conversational AI solution used by SEBI (Securities and Exchange Board of India).

While CoRover is well-known for its partnerships with government entities, its B2G business only accounts for 25% of its total revenue, with the majority coming from private sector clients. This balance underscores the company's ability to cater to diverse industries and markets, positioning it for long-term growth.

Expanding in a Competitive AI Market

India's AI market is becoming increasingly competitive with new players, such as Ola's Krutrim AI, entering the space. However, CoRover remains confident in its ability to sustain growth despite the rising competition. There are enough use cases and problems to solve, said Ankush Sabharwal, even with new entrants, we can continue to grow. The demand for AI solutions is vast, and we still have plenty of room for improvement.

CoRover's strength lies in its proven ability to address critical AI needs for both government and enterprise customers. With its robust suite of products and a rapidly expanding client base, the company is poised to thrive in the ever-evolving AI landscape.

Strategic Shift Toward Indian Market

Earlier this year, CoRover made the strategic decision to shut down its operations in the US and UK to focus on its business in India. This move aligns with the company's goal to dominate the Indian AI space, particularly in light of the anticipated exponential growth of the country's GenAI market.

According to Inc42’s report on India’s Generative AI Startup Landscape, 2023, the GenAI market in India is expected to grow from $1.1 billion in 2023 to more than $17 billion by 2030, driven by a CAGR of 48%. This represents a tremendous opportunity for AI startups like CoRover to further entrench themselves in the market and capitalize on the growing demand for advanced AI solutions.

Conclusion

CoRover’s latest $4 million Series A funding round marks a significant milestone in the company's journey. With BharatGPT at the helm of its conversational AI solutions, CoRover is well-positioned to scale its operations and expand its presence across various sectors in India. As the competition intensifies and the demand for AI chatbots increases, CoRover’s unique expertise and commitment to innovation will enable it to continue leading in the generative AI space.

By focusing on enhancing its platform, expanding its AI expert team, and leveraging new revenue models, CoRover is set to achieve its goal of faster growth and client conversion. With the growing adoption of AI across India and the rising interest in GPT-powered solutions, CoRover is on a path to becoming a key player in the country’s AI revolution.

For more on the Indian AI market and the rise of generative AI startups, check out Inc42’s latest report on India’s Generative AI Startup Landscape, 2023 here.