Indian AI startups eye US expansion but face tough fight to win American customers

# Indian AI Startups Face Challenges Winning Customers in the US Market

Indian artificial intelligence startups are looking to expand into the United States to reach enterprise customers and investors, but securing their first American clients remains a major hurdle. According to Business Standard, US companies often prefer vendors with established track records, making it difficult for emerging startups to win contracts and build credibility.

Venture capital firms, including Antler India and All In Capital, have introduced programmes to help Indian AI companies enter the US market. While some startups have moved their headquarters, attracted customers and secured additional funding, expansion remains complicated by high hiring costs, visa requirements and the challenge of building a local business network.

## Winning Initial Customers Remains Difficult

Ashish Bhatia, founder and chief executive officer of India Accelerator, said acquiring the first few customers is one of the biggest challenges for Indian startups entering the American market.

“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.

Beyond winning contracts, startups must determine whether their products meet the needs of American customers and establish relationships with local businesses, investors and potential employees. All In Capital has identified customer access, achieving product-market fit and building a strong local network as important challenges for companies entering the market.

Antler India has also highlighted the difficulty founders face when they lack an established peer network. Without trusted local contacts, entrepreneurs may struggle to obtain guidance on recruitment, pricing, legal structures and introductions to investors.

## Venture Capital Firms Offer Practical Support

To address these challenges, venture capital firms are increasingly providing operational assistance alongside financial backing. Their programmes help startups connect with prospective customers, establish local relationships and navigate the requirements of setting up a business in the United States.

Antler India launched its Embark programme in May 2025 to help startups develop their presence in the American market. Across four editions, more than 50 startups have participated, including over 15 from India.

Raghav Goyal, director of investments at Antler India, said 75% of participants had secured paying customers or active pilot projects in the US, while more than half had raised their next funding 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,” Goyal said.

The programme's results suggest that structured introductions and practical assistance can help startups navigate the early stages of international expansion, although individual outcomes may vary.

## All In Capital Expands Its US Entry Initiative

All In Capital launched its Golden Ticket programme in January 2026 to support Indian startups seeking opportunities in the United States. The initiative received more than 750 applications within its first 10 days and aimed to select between 20 and 30 startups.

The programme reflects growing interest among Indian technology founders in reaching American customers while navigating the operational and financial demands of entering a new market.

For these startups, success in the US will depend on more than access to funding. Establishing credibility with enterprise buyers, meeting security and compliance expectations, finding product-market fit and managing the costs of local operations remain essential to building sustainable businesses.