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SoftBank Group Acquires Graphcore, British AI Chipmaker

Garima Bansal
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SoftBank Group Acquires Graphcore, British AI Chipmaker

SoftBank Group of Japan has acquired Graphcore, a British artificial intelligence chipmaker, in a deal whose financial details were not disclosed, bringing an end to speculations about Graphcore’s future.

Initially positioned as a competitor to Nvidia, whose market value has surged amid high demand for AI chips, Graphcore struggled to secure necessary investments for competitive footing. By the end of 2020, it was valued at $2.77 billion. Last year, a filing indicated Graphcore required additional funding to achieve profitability, following a 20% reduction in its workforce to 494 employees and closure of operations in Norway, Japan, and South Korea.

Nigel Toon, co-founder and CEO of Graphcore, acknowledged the company’s challenges and highlighted the transformative potential of the SoftBank deal. Toon noted surprise at the speed and scale of the acquisition, emphasizing the substantial investment involved. Despite Graphcore’s smaller size relative to competitors, Toon emphasized the company’s success in developing world-class technology.

Toon, remaining in his current role, declined to disclose the acquisition price by SoftBank. Reflecting on the British tech sector, Toon pointed to historical reluctance among UK pension funds to invest in fast-growing startups, posing barriers to industry expansion. Regarding potential collaboration with Arm Holdings, another SoftBank-owned leader in chip design, Toon affirmed Graphcore’s intention to leverage synergies within SoftBank’s portfolio of companies.

Aditya Birla Fashion Increases Stake in Goodview Fashion to 51%, Making it a Subsidiary

Garima Bansal
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Aditya Birla Fashion Increases Stake in Goodview Fashion to 51%, Making it a Subsidiary

Aditya Birla Fashion and Retail Ltd has increased its stake in Goodview Fashion Private Limited by acquiring an additional 17.5% for Rs 127.42 crore. This acquisition boosts Aditya Birla’s ownership from 33.5% to 51%, turning Goodview Fashion, known for the ethnic fashion brand Tarun Tahiliani, into a subsidiary as of July 11, 2024.

The acquisition involved the purchase of 1,870 equity shares from existing shareholders, with no regulatory approvals required. Goodview Fashion reported revenues of Rs 148 crore for FY24, highlighting its strong market presence and potential for future growth.

Despite the strategic acquisition, Aditya Birla Fashion’s shares dipped 0.22% on the BSE, trading at Rs 322.80 per share during late morning trade. Such minor fluctuations are not uncommon following significant corporate announcements.

Additionally, the Aditya Birla Group, the parent company of Aditya Birla Fashion, recently announced a $50 million investment in a new manufacturing and R&D center in Texas, focused on producing epoxy resins.

Infra.Market Secures Rs 150 Crore in Debt Financing Amidst Strategic Growth Initiatives

Garima Bansal
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Infra.Market Secures Rs 150 Crore in Debt Financing Amidst Strategic Growth Initiatives

Infra.Market has recently raised Rs 150 crore (approximately $18 million) in debt financing over the past two months, building on a $50 million equity round from the Mars Unicorn Fund, a joint venture of Liquidity Group and MUFG. The Mumbai-based firm’s board approved a special resolution to issue non-convertible redeemable debentures to facilitate this debt infusion, which is part of a larger plan to raise up to Rs 500 crore through debentures.

The funding round saw participation from multiple investors, with Yubi contributing Rs 80 crore, Raymond Limited and IKF Home Finance each investing Rs 25 crore, and Samunnati Financial adding Rs 20 crore. Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market focuses on the growing construction materials market, offering a range of products including construction materials, infrastructure goods, and technical equipment.

Infra.Market serves both institutional customers (B2B) and retail outlets (D2R), supplying materials across 16 states in India and exporting to international markets such as Dubai, Singapore, Jordan, and Italy. The company has raised approximately $520 million in total through a combination of equity and debt, with Tiger Global as the largest external stakeholder holding a 21.33% stake, followed by Accel and Nexus Ventures with 16.87% and 8.46% stakes, respectively.

Despite a significant 89% increase in gross revenue to Rs 11,846 crore in FY23, Infra.Market saw its profit decline by 17% to Rs 155 crore during the same period. The company has yet to file its annual statements for FY24. Its competitors include OfBusiness, Moglix, and Zetwerk, with OfBusiness reporting nearly Rs 20,000 crore in revenue and Rs 603 crore in profit for FY24.

Infra.Market’s strategic focus on the infrastructure sector and expanding market reach positions it well within the competitive landscape. As the company continues to grow and secure funding, it aims to further strengthen its market presence both domestically and internationally.

Lightspeed’s Bejul Somaia shows Optimism for India’s Tech Startups Despite Setbacks

Garima Bansal
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Lightspeed’s Bejul Somaia shows Optimism for India’s Tech Startups Despite Setbacks

India’s emerging tech companies remain attractive investment opportunities despite the recent challenges faced by notable startups such as Paytm and Byju’s, according to Bejul Somaia of Lightspeed Venture Partners.

Earlier this year, Paytm, founded by Vijay Shekhar Sharma, encountered a major setback when a regulatory order significantly impacted its payments bank affiliate. Meanwhile, Byju’s has been grappling with corporate governance issues and legal hurdles, threatening its operational stability.

These incidents have undoubtedly impacted the startup ecosystem. However, Somaia emphasized that India’s stable political environment, booming capital markets, and effective central bank management of interest rates and inflation continue to make the country an appealing destination for venture capital.

Last year, Lightspeed raised $500 million for a new fund targeting India and Southeast Asia. The firm’s investments in India include companies such as the online grocery service Zepto, the e-commerce platform Udaan, and the fintech company Razorpay.

In addition to its significant presence in India, Lightspeed is expanding its focus on artificial intelligence infrastructure. This is evident from its investments in France’s Mistral AI and the San Francisco-based AI safety and research firm Anthropic. With over $30 billion in assets under management, Lightspeed’s influence and reach in the global tech investment landscape continue to grow.

Goldman Sachs Eyes Major Secondary Investment in MoEngage

Garima Bansal
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Goldman Sachs Eyes Major Secondary Investment in MoEngage

Goldman Sachs is close to finalizing a substantial investment in enterprise software-as-a-service (SaaS) company MoEngage, with plans to inject $35-50 million through a secondary transaction. This move highlights the growing interest in late-stage SaaS startups, even as the sector undergoes a significant valuation readjustment.

The investment involves Goldman Sachs purchasing shares from some of MoEngage’s early investors, marking it as a fully secondary funding round. Despite the general downturn in SaaS valuation multiples over the past year, the deal activity remains robust.

MoEngage, a marketing-focused SaaS firm based in Bengaluru, was last valued at $700 million following a $77 million funding round led by Goldman Sachs and B Capital in 2022. The firm has raised a total of $182 million since its inception in 2014 and counts notable clients such as Flipkart, Policybazaar, Ola, Oyo, and Mamaearth.

The broader market for SaaS investments has seen a slowdown, with funding for late-stage SaaS firms dropping from $1.53 billion in 2022 to $421 million in 2023. For mid-stage companies, investments declined from $2.1 billion in 2022 to $920 million in 2023. Despite this, significant funding rounds continue, reflecting the ongoing interest in scalable SaaS solutions.

Goldman Sachs and MoEngage have both refrained from commenting on the ongoing transaction. However, this potential investment underscores the sustained interest in the SaaS sector, even amidst fluctuating valuations and a more cautious investment environment.

Vidyut Launches Pre-Owned EV Sales and Financing Platform in Key Indian Markets

Garima Bansal
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Vidyut Launches Pre-Owned EV Sales and Financing Platform in Key Indian Markets

Bengaluru-based electric mobility startup Vidyut announced the launch of its offline pre-owned EV sales and financing platform. Initially, these services are available in Delhi-NCR, Hyderabad, and Bengaluru, with plans to expand into six additional markets, including Mumbai, Chennai, Pune, Lucknow, Agra, and Kanpur by the end of the fiscal year.

Vidyut also plans to launch an online marketplace within the next six months.

The new service offering includes managing the entire process from vehicle inspection and valuation to sale and RTO documentation for the owners. Currently, the platform resells electric commercial three-wheelers from brands such as Mahindra, Piaggio, Euler Motors, Greaves, and Altigreen.

According to Xitij Kothi, Co-Founder of Vidyut, the absence of a robust resale market is a significant obstacle to EV adoption. By launching the EV resale platform, Vidyut aims to provide accurate and transparent vehicle and battery valuation. This initiative, combined with their battery subscription model and EV financing services, addresses concerns about remaining battery life, uncertain resale value, and EV loans, thereby accelerating EV adoption.

Vidyut, which started in November 2021 as a commercial EV financing platform, has spent the past two years building capabilities to inspect, value, sell, and finance pre-owned EVs through its demand generation platform for used EVs. One of the major hurdles in EV adoption is the lack of accessibility to the resale market and resale price discovery of EVs, a challenge Vidyut aims to overcome with its new services.

TCS Reports Strong Q1 FY25 Performance with 8.7% Net Profit Growth

Garima Bansal
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TCS Reports Strong Q1 FY25 Performance with 8.7% Net Profit Growth

Tata Consultancy Services (TCS) reported a net profit of Rs 12,040 crore for the first quarter (Q1) of FY25, reflecting an 8.7% increase from Rs 11,074 crore a year ago. The company’s revenue for Q1 reached Rs 62,613 crore, marking a 5.4% annual growth. Despite challenges such as a lack of strong business growth from North America and increased costs due to employee wage hikes, TCS managed to meet market expectations. CEO K Krithivasan noted that it is still early to determine if the growth momentum is sustainable, but he remains optimistic that FY25 will outperform FY24.

The Indian IT industry continues to face challenges due to slower technology spending in North America and Europe, which are key markets. For FY24, TCS experienced a growth rate of below 10%. In Q1 FY25, the company’s operating profit margins were 24.7%, up from 23.2% a year earlier, though there was a sequential decrease of 1.3% compared to Q4 FY24. Key growth drivers for TCS included technology platforms such as artificial intelligence (AI), cloud, cybersecurity, and enterprise solutions. The company has seen strong AI adoption among its clients, with 270 ongoing projects valued at $1.5 billion.

India played a significant role in TCS’s growth in Q1, achieving a 61.8% annual growth rate. North America, which accounted for about 50% of TCS’s revenue, saw a slight decline of 1.1% compared to the previous year. The total contract value (TCV) order book for Q1 stood at $8.3 billion, and the company indicated that a TCV between $7-9 billion would be a comfortable range.

A notable positive development for TCS has been the increase in employee hiring following a declining trend over the past three quarters. The total employee headcount rose to 606,998, an increase of 5,454 compared to Q4 FY24, although it remains lower than the 615,318 employees recorded a year ago. TCS aims to hire around 40,000 freshers annually and plans to meet this target in the current financial year.

Overall, TCS’s performance in the first quarter of FY25 demonstrates resilience despite external pressures. The company remains focused on leveraging its technology platforms and expanding its workforce to drive growth in the upcoming quarters. The outlook for FY25 appears positive, with expectations of improved performance compared to FY24.

Melooha Acquires Munitalks, Expanding Astrological Services and Multilingual Capabilities

Garima Bansal
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Melooha Acquires Munitalks, Expanding Astrological Services and Multilingual Capabilities

Astrology SaaS platform Melooha has acquired Bengaluru-based language translation and astrological guidance startup Munitalks in a transaction combining cash and stock. While specific financial details were not disclosed, sources close to the deal estimate it at approximately INR 70 Lakh.

The acquisition aims to capitalize on Munitalks’ expertise in multilingual support and astrology consultation services to enhance Melooha’s astrological offerings. Melooha also plans to integrate Munitalks’ AI technology stack to facilitate translations across various Indian languages, thereby expanding its user base.

Founded in 2022 by Vikram Labhe and Bahlchandra Patil, Melooha specializes in personalized astrological guidance based on precise birth details, operating in over 110 countries. Vikram Labhe emphasized, that this acquisition underscores their commitment to advancing astrological guidance through cutting-edge technology. By integrating Munitalks, they aim to enhance the accuracy and personalization of user insights, thereby improving overall user experience.

Melooha has secured INR 5.3 Cr in angel funding led by US-based Streak Ventures LLC and several angel investors. Meanwhile, Munitalks, founded by Sumit Rathore earlier this year, focuses on simplifying complex astrological queries and offers services in over 80 languages.

This acquisition occurs amid increasing investor interest in India’s astrology sector. Recently, Astrotalk raised INR 110 Cr and InstaAstro secured INR 18.5 Cr in funding rounds, reflecting the sector’s growth potential from INR 30K Cr to an estimated INR 50K Cr by 2025.

MedGenome Acquires Stake in GenX Diagnostics to Advance Genomic Healthcare in Odisha

Garima Bansal
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MedGenome Acquires Stake in GenX Diagnostics to Advance Genomic Healthcare in Odisha

MedGenome has recently acquired a stake in GenX Diagnostics, a well-established diagnostics chain located in Odisha. This partnership is set to introduce advanced genomic solutions to the region, promising to enhance diagnostic and healthcare outcomes for the local population.

GenX Diagnostics, renowned for its strong regional presence, currently operates seven diagnostic centers and 60 collection centers throughout Odisha. Their flagship laboratory, located in Saheed Nagar, Bhubaneswar, holds accreditations from both the National Accreditation Board for Testing and Calibration Laboratories (NABL) and the National Accreditation Board for Hospitals & Healthcare Providers (NABH). Through this strategic collaboration, GenX Diagnostics aims to harness MedGenome’s advanced scientific and technological capabilities to deliver actionable genetic insights. This will enable clinicians to offer more precise and targeted treatments to their patients.

Dr. Vedam Ramprasad, CEO of MedGenome, expressed his excitement about the acquisition, highlighting its potential to expand MedGenome’s market presence and product portfolio. He emphasized that GenX Diagnostics aligns perfectly with MedGenome’s mission to leverage genomics in addressing healthcare challenges. The acquisition aims to bolster MedGenome’s network in tier II and tier III cities across India, driving deeper market penetration and introducing innovative new tests.

Dr. Biswajit Mohanty, Managing Director & Chairman of GenX Diagnostics, Bhubaneswar, echoed these sentiments, emphasizing their commitment to enhancing healthcare services in Odisha through this collaboration. He noted that combining GenX Diagnostics’ extensive product range with MedGenome’s omics solutions will empower healthcare providers and consumers in Eastern India with state-of-the-art diagnostic capabilities.

Otipy Secures $10 Million in Extended Series B Round for Expansion

Garima Bansal
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Otipy Secures $10 Million in Extended Series B Round for Expansion

Farm-to-fork company Otipy is set to secure fresh funding in an extended Series B round from both new and existing investors, 28 months after its previous $32 million Series B funding in March 2022. The new investment will total $10 million and will be used to strengthen Otipy’s operations in existing cities and support its expansion plans. Currently active in Delhi (NCR) and Mumbai, Otipy is considering launching in Bengaluru and Hyderabad.

The additional capital will help Otipy enhance its farm-to-fork delivery model, which involves sourcing fresh produce directly from farmers and delivering it to consumers every morning. The company currently generates a gross merchandise value (GMV) of Rs 20 crore monthly with a Rs 3 crore burn rate. Having established a strong presence in the fruits and vegetables market, Otipy now plans to expand its focus to groceries and aims to achieve EBITDA breakeven in FY25.

To date, Otipy has raised a total of $44 million, including its $32 million Series B round. The largest external stakeholders in the company include SIG Global and WestBridge Capital. The latest funding round will further boost Otipy’s ability to scale and improve its services.

Otipy collaborates with over 20,000 farmers and has more than 1,000 partners, according to its website. The Gurugram-based company achieved over 50% growth, increasing its scale to Rs 173 crore in FY24 from Rs 115 crore in FY23. Additionally, its losses decreased by 21% in the fiscal year ending March 2024.

With this new investment, Otipy is well-positioned to continue its growth trajectory and expand its market presence in new cities, while maintaining its commitment to delivering fresh produce directly from farmers to consumers.

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