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Tech Mahindra Q2 Results: Profit Jumps 153% YoY to ₹1,250 Crore, Revenue Increases by 3.5%

Supriya Biswas
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Tech Mahindra Q2 Results: Profit Jumps 153% YoY to ₹1,250 Crore, Revenue Increases by 3.5%

Tech Mahindra has reported an impressive 153.1% year-on-year (YoY) growth in its consolidated net profit for the September quarter, reaching ₹1,250 crore. The company’s revenue also saw a 3.5% YoY rise to ₹13,313 crore. The Mahindra Group company announced an interim dividend of ₹15 per share, with the record date set for November 1.

Sequentially, Tech Mahindra’s profit surged by 46.81%, while revenue increased by 2.36%. The company also highlighted new deal wins totalling $603 million, with its profit after tax (PAT) margin improving to 9.4%, up 280 basis points quarter-on-quarter (QoQ) and 560 basis points YoY.

Rohit Anand, Chief Financial Officer of Tech Mahindra, emphasized the company’s focus on deal wins, revenue growth, cost efficiency, and robust cash flow. “In line with our capital allocation strategy, we are pleased to declare an interim dividend of ₹15 per share,” he stated.

Mohit Joshi, Tech Mahindra’s CEO and Managing Director, acknowledged the ongoing challenges in the IT services sector but pointed out the company’s focus on improving client relationships and enhancing operational efficiency through Project Fortius. “This has contributed to margin growth for the third consecutive quarter,” he added.

In terms of constant currency, Tech Mahindra’s revenue grew by 0.7% QoQ and 1.2% YoY. However, the company reported a 1.7% YoY decline in revenue from its communications vertical, while the banking, financial services, and insurance (BFSI) segment saw a 4.5% YoY growth. Additionally, revenue from the technology, media, and entertainment vertical increased by 2.4%.

The company’s attrition rate in the IT sector rose to 11% in Q2, compared to 10% in the previous quarter. Overall headcount increased by 4.5% QoQ, reaching 154,273 employees.

Tech Mahindra’s shares closed at ₹1,688 on the BSE, down by 0.68% from the previous session.

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Weekly Startup Funding Jumps 84% to $534 Million

Supriya Biswas
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Weekly Startup Funding Jumps 84% to $534 Million

In a positive development for the startup ecosystem, companies raised approximately $533.6 million across 28 deals from October 12 to October 18, reflecting an 84% increase compared to the same period last year. This week’s funding saw a significant boost, more than five times the $103.2 million raised in the previous week. Although the number of deals fell slightly from 33 in the year-ago period, the amount raised this year has surged from $290 million.

Eruditus: Executive education platform Eruditus brought in $150 million at a flat valuation of $3.2 billion. The round was led by TPG Rise, an impact investment fund from the US-based private equity firm.

Giva: Jewellery brand Giva completed its extended Series B round, securing ₹255 crore (around $30.3 million) in funding. The round was led by Premji Invest, with fresh backing from investors such as Epiq Capital, Edelweiss Discover Fund, and senior company management.

Everstage: SaaS company Everstage raised $30 million in a funding round led by Eight Roads Ventures, with participation from existing investors Elevation Capital and 3one4 Capital.

Neuron7.ai: The enterprise tech startup Neuron7.ai raised $44 million, with US-based investment firm Smith Point Capital leading the round. Existing investors Nexus Venture Partners and Battery Ventures also participated.

Purplle: Beauty and personal care retailer Purplle extended its funding round by ₹500 crore, closing at ₹1,500 crore (approximately $180 million). The round was led by the Abu Dhabi Investment Authority (ADIA), with additional participation from existing investors Premji Invest and Blume Ventures.

The surge in funding reflects renewed confidence among investors, driven by robust performances across various sectors, including education, enterprise tech, beauty, and jewellery.

Infosys Boosts Revenue Guidance Amid Financial Services Growth

Supriya Biswas
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Infosys Boosts Revenue Guidance Amid Financial Services Growth

Infosys, India’s second-largest IT firm, reported a 4.7% rise in net profit for the September quarter, reaching Rs 6,506 crore, driven by strong performance in the financial services sector. Revenue grew by 5.1% year-on-year to Rs 40,986 crore. The company has raised its full-year revenue guidance to 3.75%-4.50%, reflecting improving market conditions despite global economic challenges.

CEO Salil Parekh credited the financial services sector for the growth but noted that spending in other sectors remains cautious, with deals focusing primarily on cost efficiency. This mirrors trends observed by other industry leaders like Wipro and TCS.

Operating margins remained stable at 21.1%, and Infosys reported $2.4 billion in large deal wins, though this was down from the previous quarter. North American growth lagged, but Europe saw a 15.5% rise in revenue, while India grew by 16%.

Infosys added 2,456 employees, bringing the total workforce to 317,788, and remains on track to meet its hiring targets. The company declared an interim dividend of Rs 21 per share. Despite unmet market expectations, Infosys’ strategic focus on financial services and cost efficiencies continues to drive its resilience in a challenging environment.

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Suraasa Secures $6 Million in Funding to Enhance Global Teacher Mobility

Supriya Biswas
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Suraasa Secures $6 Million in Funding to Enhance Global Teacher Mobility

Suraasa, a platform dedicated to the development of the teaching workforce and promoting global teacher mobility, has successfully raised $6 million in a funding round led by Reach Capital. This round also saw contributions from ETS Capital, NB Ventures, TSM Ventures, TRTL Ventures, and various strategic investors.

The funding will support Suraasa’s commitment to improving teacher quality, providing educators with internationally recognized skills, and aiding their transition into various educational systems around the globe.

Founded by Rishabh Khanna, Suraasa specializes in competency-based skilling programs designed to prepare educators for success in both local and international classrooms. The platform addresses the rising global demand for qualified teachers by equipping them with the necessary competencies to thrive in diverse educational environments.

Through its unique blend of upskilling and teacher recruitment services, Suraasa ensures that educators are not only ready to tackle global challenges but also connected to teaching opportunities worldwide.

Based in Gurugram, the startup previously raised $1.2 million in December 2022 from investors including Inflection Point Ventures, NB Ventures, Supermorpheus, Vinners, and SucSEED Innovation.

8i Ventures Achieves Impressive 12X Return Following Exit from M2P Fintech

Supriya Biswas
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8i Ventures Achieves Impressive 12X Return Following Exit from M2P Fintech

8i Ventures, a venture capital firm, has successfully completed its full exit from M2P Fintech, achieving an outstanding 12x return on its investment over a span of 4.5 years. This exit coincided with M2P Fintech’s recent fundraising round, which raised $100 million through a combination of primary and secondary investments.

The firm initially invested ₹9.7 crore, which has now grown to ₹115.9 crore, marking an internal rate of return (IRR) of 131%. Remarkably, this single investment has yielded 1.27 times the total corpus of Fund I on a pre-tax basis while utilizing just 10% of its capital.

8i Ventures’ Fund I, which was launched in May 2019 and concluded in July 2021 with a total of $15.5 million, has demonstrated strong overall performance, currently achieving a 2.5x return with a 37% IRR and a Multiple On Invested Capital (MOIC) of 3.3x.

The fund’s diverse portfolio includes notable companies such as Blue Tokai, Slice, Easebuzz, and Bbetter, with several of these firms preparing for upcoming IPOs. Bbetter, the youngest addition to the portfolio, has already reached profitability and aims for a $10 million run rate this year, with plans to double its revenue.

In 2022, 8i Ventures launched its second fund, which successfully closed its first round at $25 million. Additionally, the firm has introduced a $10 million seed funding initiative named ‘Origami’ to support emerging startups in India. Over the past decade, 8i Ventures and its partners have invested in more than 60 seed to early-stage startups.

Simplismart Secures $7 Million in Series A Funding to Enhance AI Solutions

Supriya Biswas
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Simplismart Secures $7 Million in Series A Funding to Enhance AI Solutions

Bengaluru-based SaaS company Simplismart has successfully raised $7 million in its Series A funding round, with Accel leading the investment, alongside contributions from Shastra VC, Titan Capital, and other investors.

This funding round, places the company’s valuation at approximately $35 million, according to insider sources.

The startup plans to allocate the funds toward expanding its research and development (R&D) efforts and accelerating its growth trajectory, as detailed in a recent press release.

Founded in 2022 by Amritanshu Jain and Devansh Ghatak, Simplismart specializes in an AI-driven no-code machine learning platform. This innovative tool enables users to develop custom machine learning models utilizing their own data, thus empowering applications and decision-making without the need for coding skills.

Simplismart’s mission is to facilitate AI adoption among enterprises by delivering a high-performance, cost-effective platform that tackles common hurdles in enterprise AI implementation, including performance compromises and the intricacies of standardized workflows.

The startup is focused on addressing challenges such as excessive costs, low returns on investment (ROI), data privacy concerns, and the necessity for customization to minimize operational downtime.

In July 2023, AWS and Accel unveiled the AWS ML Elevate program, which selected 35 generative startups from India, including Simplismart as part of its inaugural cohort.

LTIMindtree Achieves 7.7% Year-on-Year Profit Growth

Supriya Biswas
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LTIMindtree Achieves 7.7% Year-on-Year Profit Growth

LTIMindtree, a leading IT services firm based in Mumbai, announced a significant 7.7% increase in its net profit for Q2FY25, reaching ₹1,251.6 crore, compared to ₹1,162 crore in the same quarter last year. Sequentially, this marks a robust growth of 10.3% from the ₹1,135 crore reported in the previous quarter.

In terms of revenue, the company reported a consolidated growth of 5.9%, totaling ₹9,432.9 crore for Q2FY25, up from ₹8,905.4 crore in Q2FY24. This also reflects a 3.2% increase from the ₹9,142.6 crore recorded in Q1FY25.

When looking at figures in USD, the revenue saw a rise of 4.7% year-on-year, amounting to $1.13 billion, with a quarter-on-quarter increase of 2.8%.

Debashis Chatterjee, the CEO and Managing Director, expressed optimism about the quarter’s performance, stating, “Q2 was a strong quarter characterized by widespread sequential growth across all our sectors and regions. We secured several multi-year contracts, including one exceeding $200 million. The ongoing deal momentum in critical sectors and significant hiring in Q2, particularly fresh talent, positions us favorably as we progress into the second half of the fiscal year.”

For the September quarter, the company’s operating margins improved to 15.5%, an increase of 50 basis points from the previous quarter’s 15%, although slightly down from last year’s margin of 16%. Notably, over a third of LTIMindtree’s revenue is derived from the banking, financial services, and insurance sectors, with three-fourths of its business originating from North America.

Febi.ai Secures $2 Million in Pre-Series A Funding for Enhanced AI-Driven Accounting Solutions

Supriya Biswas
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Febi.ai Secures $2 Million in Pre-Series A Funding for Enhanced AI-Driven Accounting Solutions

Febi.ai, an innovative platform specializing in accounting and tax management, has successfully secured $2 million in a pre-Series A funding round. This financing was co-led by notable investors, including Lumis Partners, Virender Rana, Amit Chaudhary (co-founder of Lenskart), Padmaja Ruparel, Rohan Bhargava (co-founder of Cashkaro), Rajat Jain, and others.

The funds will be directed towards enhancing the company’s artificial intelligence capabilities, aimed at automating accounting tasks and ensuring tax compliance. Additionally, Febi.ai plans to increase its customer acquisition efforts and expand its workforce, according to a statement from the company.

Founded in 2022 by Amit Jindal, Saurabh Jain, Ashu Goel, and Rahul Bansal, Febi.ai utilizes advanced AI technology to streamline the accounting process, reducing the burdens of manual data entry and the potential for errors in invoice verification. The platform not only automates documentation management and tax compliance but also offers entrepreneurs and founders real-time business insights for more informed decision-making.

Based in Gurugram, the company aims to address the pressing issues encountered by teams and users of current accounting and tax compliance platforms. Febi.ai claims to have been developed with input from the chartered accountant community, empowering entrepreneurs and CAs with timely insights and efficient management of their accounting and tax obligations.

By harnessing a state-of-the-art AI and machine learning framework alongside a team of experienced professionals—including chartered accountants and personal finance advisors—Febi.ai ensures real-time management of all accounting, tax compliance, and financial operations. The platform also provides a dedicated personal accountant for strategic financial advice and support.

Optimized Electrotech Secures INR 25 Cr Grant for Defence Innovations

Supriya Biswas
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Optimized Electrotech Secures INR 25 Cr Grant for Defence Innovations

Optimized Electrotech, a defence tech startup, has been awarded a grant of INR 25 Cr by the Indian government as part of the ADITI 1.0 iDEX-DIO Challenge, an initiative of the Defence Space Administration under the Innovations for Defence Excellence (iDEX) programme.

The company, founded in 2017 by Sandeep Shah, Anil Yekkala, Dharin Shah, Kuldeep Saxena, and Purvi Shah, specializes in offering advanced surveillance solutions to both strategic and commercial clients. The funds will be used to create cutting-edge technology that supports India’s defence modernization and promotes the nation’s goal of achieving self-reliance (Atmanirbhar Bharat).

Optimized Electrotech’s product portfolio spans a wide range of applications, including smart city surveillance, satellite imaging, border security, aircraft tracking, and more. These solutions operate across multiple electromagnetic spectrums and integrate AI to strengthen surveillance capabilities. The startup’s indigenously developed platforms are tailored for use by governments, defence forces, and paramilitary services to counter emerging threats, such as unauthorised drone activities.

Co-founder Sandeep Shah expressed his gratitude, stating, “Being recognized by the Ministry of Defence at DefConnect 4.0 is a huge honour. This award highlights our commitment to national security and marks a significant step in enhancing India’s space situational awareness.”

This milestone positions Optimized Electrotech as a key player in India’s growing defence technology sector, with its innovations playing a vital role in strengthening the country’s security infrastructure.

Eruditus Secures $150 Million in Funding Led by TPG Rise, Plans to Relocate Headquarters to India

Supriya Biswas
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Eruditus Secures $150 Million in Funding Led by TPG Rise, Plans to Relocate Headquarters to India

Executive education leader Eruditus has successfully raised $150 million in a new funding round, spearheaded by TPG Rise, the impact investment arm of US-based private equity firm TPG. The funding round maintains Eruditus’ valuation at $3.2 billion post-money, with TPG Rise contributing $100 million. Other prominent participants include SoftBank Vision Fund 2, Leeds Illuminate, Accel, CPP Investments, and the Chan Zuckerberg Initiative.

This latest funding reinforces Eruditus’ position as the largest Indian edtech company by revenue, having reported ₹3,800 crore in FY24. The company is on track to surpass ₹5,000 crore in revenue during the current fiscal year. Eruditus is also planning to shift its headquarters from Singapore to India, joining the ranks of other Indian startups with holding companies overseas.

According to co-founder Ashwin Damera, the extended timeframe to close this funding round stemmed from global investors’ concerns about the Indian edtech sector, particularly in light of Byju’s challenges. However, Eruditus has managed to reassure investors by highlighting its strong fiscal performance, projecting ₹5,000 crore in revenue and an estimated ₹300 crore in EBITDA for FY25.

The fresh capital will primarily be used for expansion, with Eruditus eyeing opportunities in postgraduate and undergraduate education in addition to its current focus on executive education. The company also plans to increase its university partnerships from 80 to 150 and invest in its study-abroad services.

Eruditus is strategically preparing for a potential IPO within the next two years, with plans to maintain a 25-30% annual growth rate. The firm aims to achieve a topline of ₹15,000 crore, which will be crucial for determining its valuation multiples when it eventually goes public. A portion of the funds raised may also be allocated towards servicing its debt, although the payment is not due for another two years.

This funding round follows the recent $210 million raised by PhysicsWallah, marking another significant deal in the edtech space, as Eruditus’ competitor Upgrad is also in the process of closing a $50-60 million round.

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