Indian artificial intelligence startups are seeking to expand into the U.S. market but are struggling to win American customers, according to Business Standard. U.S. enterprises typically demand a proven track record before signing contracts with new vendors, making it difficult for startups to secure their first clients.
Venture capital firms such as Antler India and All In Capital have launched programs to help Indian AI startups establish a foothold in the U.S. Some startups have relocated their headquarters, secured customers and raised follow-on funding. However, high local hiring costs and visa hurdles continue to complicate their expansion plans.
Ashish Bhatia, founder and chief executive officer of India Accelerator, said securing the first few customers is among the biggest challenges for Indian startups entering the U.S. market.
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“First, US buyers want references, so the first two or three logos are the hardest to win. Second, security, compliance and architecture expectations are much higher. Third, hiring US sales and business development people is expensive, and visas for founders who travel back and forth add friction,” Bhatia said.
All In Capital identified customer access, finding product-market fit in a new market and building a local network as key challenges for Indian startups expanding into the U.S.
Antler India highlighted another obstacle: the lack of an established peer network. Founders entering a new market may have no trusted contacts to consult on hiring, pricing, legal structures or investor introductions.
According to the report, venture capital firms are providing support beyond funding by helping startups connect with potential customers, build local networks and navigate operational requirements.
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Antler India launched its Embark program in May 2025. More than 50 startups have participated across four editions, including more than 15 from India.
Raghav Goyal, director of investments at Antler India, said, “Seventy-five per cent now have paying customers or active pilots in the U.S. Over half have raised their next round. Almost 50 per cent have moved to the U.S., with their holding company flipped to a US entity and O-1 visas in place for founders. Most of them signed their first U.S. customer within three to four weeks of Embark.”
Similarly, All In Capital launched its Golden Ticket program in January to help Indian startups expand into the U.S. market. The program received more than 750 applications within its first 10 days and aimed to select 20 to 30 startups.