Telecom major Bharti Airtel is reportedly in advanced talks with the Tata Group to acquire Tata Play, a direct-to-home (DTH) business that has been operating at a loss. 

According to an ET report, the acquisition aims to strengthen Airtel’s presence in the struggling digital TV segment and enhance its bundled offerings, ultimately boosting non-mobile revenues through convergence.

If the acquisition succeeds, it will represent Tata’s exit from its underperforming content and entertainment operations. This would be the second agreement between the two business groups, following Bharti’s acquisition of Tata’s struggling consumer mobility business in 2017, which was integrated two years later. This also marked N Chandrasekaran’s first divestment as chairman of Tata Sons after he assumed leadership of the group holding company.

“The group had bet on the growth of Tata Play and recognised its strategic value until the dynamics of the market changed,” an executive close to the development told ET. “The group has been clear that it must maintain a position of strength and scale in any market. That did not materialise as hoped with Tata Play. In contrast, Tata Play aligns well with Airtel’s strategic plans and its portfolio of offerings to consumers.”

Tata Sons, the holding company of the diversified conglomerate, currently owns 70% of Tata Play after acquiring Singapore investment firm Temasek Holdings Pte’s 10% stake in April for INR 835 Cr ($100 Mn). This acquisition valued the company at $1 Bn, a decline of one-third from its pre-pandemic valuation of $3 Bn.

Walt Disney owns 30% of Tata Play but has been seeking to exit the TV distribution business after streamlining its portfolio and merging its media operations with Reliance Jio in India. Disney inherited its stake in Tata Play through Sky after its 2019 mega-merger with Rupert Murdoch’s 21st Century Fox. Before acquiring Temasek’s stake, Tata had also purchased the minority stake held by Tata Opportunities Fund in the venture.

Airtel is expected to acquire Tata Play at a valuation similar to that of the Temasek deal, as per the report. The original plan was to consolidate the Tata stakes and pursue an IPO, with documents filed in 2022. However, Tata suspended the listing plan in August.

The development comes months after telecom major Bharti Airtel announced plans to shut down its music streaming platform Wynk Music. Besides, Airtel also announced a partnership with Apple to offer exclusive deals for Apple TV+ and Apple Music to its customers. Wynk Premium users will transition to Apple Music and benefit from exclusive offers.

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Mukesh Ambani-led Reliance Industries’ video streaming platform JioCinema has roped in YouTube executive Ishan Chatterjee as its new chief business officer as part of the company’s efforts to push its digital offerings in the rapidly growing streaming space.

“Chatterjee’s appointment reflects JioCinema’s commitment to accelerate its transformation into a tech-enabled company, delivering cutting-edge, seamless digital experiences to its rapidly expanding user base,” the company said in a statement.

As the newly appointed chief business officer at JioCinema, Chatterjee will oversee the platform’s overall monetisation, focusing on driving revenue growth across sports and entertainment, with a particular emphasis on sports and SMB revenue streams.

Prior to joining JioCinema, Chatterjee served as managing director of YouTube India, where he was instrumental in shaping the platform’s strategy and growth. With over two decades of experience, including 13 years at Google and roles at McKinsey and Hindustan Unilever, he brings a wealth of expertise.

Chatterjee is an alumnus of The Wharton School and St. Stephen’s College, Delhi. In his new role, he will collaborate closely with JioCinema’s leadership team, working alongside Kiran Mani, CEO for digital ventures at Viacom18.

The appointment comes at a time when reports indicate that Reliance Industries is mulling to have only one OTT platform, JioCinema, after it wraps up merger with Star and Viacom18.

The Mukesh Ambani-led conglomerate plans to merge Disney+ Hotstar with JioCinema after getting regulatory nod for the proposed merger, to cut costs and expand JioCinema’s content offerings.

In its annual report 2023-24, Reliance Industries said that JioCinema had 225 Mn average monthly active users while Disney+ Hotstar had 333 Mn. Meanwhile, data from Google Play Store showed that Disney+ Hotstar had more than 500 Mn downloads, significantly higher than JioCinema’s 100 Mn.

In February this year, Reliance Industries and The Walt Disney Company inked a deal to set up a joint venture (JV) that would combine the businesses of Viacom18 and Star India Private Limited.

At the time, it was reported that the merged entity will host over 100 TV channels and streaming platforms – Disney+ Hotstar and JioCinema. It will also exclusively wield the rights to distribute Disney’s content in India as well Viacom18-owned sports content.

Additionally, RIL said it would invest INR 11,500 Cr in the JV to fuel its growth.

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The government has approved the transfer of non news TV channel licenses from Reliance Industries’ Viacom18 to Star India.

“… it is hereby informed that the Ministry of Information and Broadcasting, Government of India, vide its order dated September 27, 2024, has granted its approval for transfer of licenses relating to non news and current affairs TV channels held by Viacom18 Media Private Limited in favour of Star India Private Limited,” as per exchange filings by Reliance Industries. 

However, the filing added that it is subject to conditions laid by the Competition Commission of India.

The merger is poised to create the largest media entity in the country, valued at nearly $8.5 Bn and will house two streaming services and around 120 television channels. 

As a part of this merger, Reliance Industries will hold a stake of 63.16% in the new entity, while Disney will own the remaining 36.84%. 

The proposed combination aims to merge the entertainment businesses of Viacom18, a part of the Reliance Industries Ltd (RIL) group, and Star India Private Limited (SIPL), which is wholly owned by The Walt Disney Company (TWDC). 

Following the transaction, SIPL will become a joint venture (JV) jointly held by RIL, Viacom18, and TWDC’s existing subsidiaries.

While Nita Ambani is set to chair the joint venture, Uday Shankar will be the Vice Chairperson. 

Notably, RIL will also infuse around $1.4 Bn into the joint venture to bolster its growth strategy and enhance its competitive edge against global media giants. 

This comes after NCLT greenlit the merger deal on August 30 after CCI gave its consent on August 28. 

It is pertinent to note that CCI’s approval was vital as it ensured that the the merger did not violate antitrust laws and maintained competitive integrity in the media sector. 

Earlier in February, RIL and The Walt Disney Company inked a deal earlier this year to set up a joint venture (JV). 

As this merger unfolds, the newly formed entity will position itself to compete against players in India’s media landscape like Sony, Netflix, and Amazon Prime Video. 

In a bid to get the necessary approvals for the merger, RIL and Walt Disney have reportedly been offering a slew of rebates, including proposals to offload some news channels. 

Last month, the two parties reportedly also proposed a two-year freeze on advertising rate cards to secure the CCI’s approval for their merger. 

On the financial front, Walt Disney previously disclosed that it had incurred over $2 Bn in charges for the second quarter of 2024 due to goodwill impairments related to Star India, stemming from the merger with Reliance Industries.

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With more and more companies joining the reverse flipping parade, Info Edge cofounder Sanjeev Bikhchandani said that the companies want to move their domicile to India due to better initial public offering (IPO) prospects in the country compared to other nations.

During a discussion with Inc42 cofounder and CEO Vaibhav Vardhan at Money X, Bikhchandani shared that the IPO standard is higher overseas in terms of revenue, profitability and other metrics. 

According to him, companies in India target for public listing in 10-12 years since launch. “While Mamaearth went for IPO in just 6-7 years, companies like MakeMyTrip took close to 10 years,” said Bikhchandani.

It is pertinent to note that after a lull in IPOs in 2022 and 2023 due to geopolitical tensions, a raging funding winter and macroeconomic pressures, startups in India are lining up in droves to list on the bourses this year..

The latest ones mulling to go for IPO are Swiggy, Mobikwik, Physics Wallah, Ather Energy, among others.

Notably, Bikhchandani’s InfoEdge was one of the early investors in Swiggy’s rival Zomato and still holds around 13% of Zomato’s total shares, the company which went public in 2021.

Currently, over 90% of startup investors are expecting a funding revival in H2 2024.

Unlike H1 2023, when funding raised by Indian startups cratered 72% year-on-year (YoY), the decline in numbers was a mere 2% YoY in the first six months of the ongoing calendar year.

Also, two startups turned unicorn in H1 2024 (Rapido became the third unicorn of the year in July) whereas the same number of startups (Zepto and InCred) entered the coveted club in the entire 2023. Additionally, the total funding raised by the Indian startup ecosystem since 2014 touched the $150 Bn mark during the first six-month period of 2024.

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Cracking the whip on unsolicited and pesky calls, telecom giant Bharti Airtel on Wednesday (September 25) announced the launch of artificial intelligence (AI)-powered spam detection tool. 

The new solution will flag suspected spam calls and messages in real-time to end users. In a statement, the company said that the new offering will be free and will be auto-activated for all Airtel users.

“Spam has become a menace for customers. We have spent the last twelve months to solve this comprehensively. Today marks a milestone as we launch the country’s first AI-powered spam free network that will shield our customers from the continuous onslaught of intrusive and unwanted communications,” said Airtel managing director and CEO Gopal Vittal.

Developed in-house, the AI-powered solution leverages its proprietary algorithm to classify calls and messages as “Suspected SPAM”. This is done by analysing various parameters such as the caller’s usage patterns, call frequency, call duration, among others, on a real-time basis. 

Thereafter, this data is cross-referenced with known spam patterns, and calls and SMSes are accordingly flagged by the telco. 

Elaborating on this, Airtel said that the solution has dual filters and operates at two levels – network layer and IT systems layer. In the statement, the telecom operator claimed that the solution will be able to process 150 Cr messages and 250 Cr calls in a span of two milliseconds. 

“In 2 milliseconds, our solution processes 1.5 Bn messages and 2.5 Bn calls every day. This is equivalent to processing 1 Tn (1 Lakh Cr) records on a real time basis using the power of AI. Our solution has been able to successfully identify 100 Mn potential spam calls and 3 Mn spam SMSes originating every day,” added Vittal.

Additionally, the company also claims that its AI-powered tool can also alert customers to “malicious” links received via SMS. For this, the telco has built a centralised database of blacklisted URLs, which is leveraged by the AI to cross-check whether a link is suspicious. 

Airtel added that the solution can also detect anomalies such as frequent IMEI changes to curb the growing menace of spam calls.

This comes at a time when Indian authorities have ramped up focus on curbing the growing menace of spam calls. Earlier this week, telcos blacklisted 50 entities and disconnected 2.85 Lakh mobile numbers for spamming users on the directions of the Telecom Regulatory Authority of India (TRAI).

Afterwards, it was also reported that TRAI was pushing the Ministry of Electronics and Information Technology (MeitY) to take strong measures against unsolicited communications via apps such as WhatsApp and Telegram.

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Sandip Patel, managing director of IBM India and South Asia, has said that India is on the cusp of a ‘digital renaissance’ with the country witnessing ‘Naya Daur’ of digital Bharat. 

Speaking at the IBM Think 2024 event, Patel said India is leading the charge in adoption of artificial intelligence (AI). He said that 59% of domestic enterprises have already integrated AI into their products — the highest adoption rate globally, citing an internal survey conducted by IBM, PTI reported.

The IBM India head said that AI is not just a buzzword, but a key driver of growth for India, adding that the company remains focused on hybrid cloud and AI, which according to Patel, are “two of the most transformational technologies of our time”.

The growth curve from experimentation to scaling AI will not be without challenges, the IBM executive said, adding that companies need to be cautious about the technology’s implementation.

Patel laid out three guiding principles for companies to incorporate AI into their businesses: how to make it more practical for real-life use cases, how to ensure its responsible use and how to embed it seamlessly into daily operations.

Scaling responsible AI will be crucial to India’s mission of ‘Viksit Bharat’, characterised by transparency, explainability, robustness, privacy and fairness, he emphasised.

The IBM executive’s comments come at a time when the AI boom, particularly GenAI, has spawned the rise of new startups in India, which cater to clients across sectors such as  consumer support, manufacturing, and fintech. 

As per Inc42, India is home to more than 70 GenAI startups. These startups raised more than $440 Mn between 2019 and Q3 2023 with backing from over 80 Indian institutional investors. India also minted a unicorn in this space this year — Krutrim.

The rising adoption of AI in the country comes on the back of favourable government policies. To strengthen the AI ecosystem in the country, the union cabinet approved the India AI Mission earlier this year with a total outlay of over INR 10,300 Cr. It envisages creating a scalable AI computing infrastructure by deploying over 10,000 Graphics Processing Units (GPUs) through strategic public-private collaborations.

The Economic Survey 2024 also emphasised that AI would impact several facets of the Indian economy and put the onus on private companies to leverage AI to augment labour rather than displace jobs.

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Online classified company Info Edge, which operates platforms like Naukri.com, 99acres.com and Jeevansathi.com, has announced the completion of its 34.93% stake sale in Wishbook Infoservices Private Limited.

The divestment was completed yesterday (September 23), through its wholly-owned subsidiary, Startup Investments (Holding) Limited (SIHL).

On May 16, Info Edge announced that its board had considered and approved the proposal to divest its 34.93% holding in Wishbook on a fully converted & diluted basis. 

Founded in 2016 by Arvind Saraf, an IIT alumni with experience at Google, Wishbook Infoservices Private Limited is a Surat-based B2B startup focused on providing catalogue distribution services to manufacturers, wholesalers, and retailers, enabling them to access product and sales information.

Following the development, shares of Info Edge surged as much as 1.09% to reach INR 8232.60 during the intraday trading today (September 24) on the BSE. 

However, the shares pared most of the gains to trade 0.06% above the previous clause at INR 8148.85 at 11:32 AM. 

Info Edge’s market capitalisation was at INR 1,05,409.89 Cr at the above given time and as many as 37,450 shares of Info Edge changed hands until 11:32 AM. 

Notably, the stock reached its 52-week high mark at INR 8,259.95 apiece during the trading session on September 23. 

Info Edge’s stock has given healthy returns to its investors this year as its year-to-date return stood at 58.5%. 

On the financial front, the company reported robust growth in its consolidated profits in the first quarter of the ongoing fiscal year (Q1  FY25). 

Its profit zoomed to INR 258.85 Cr, a 75% year-on-year (YoY) increase from the INR 147.4 Cr it made in Q1 FY24. On a sequential basis, the Sanjeev Bikchandani-led company’s profits increased by 195% from last quarter’s INR 87.96 Cr. 

In tandem with the profit increase, the company’s revenue from operations also grew 20% YoY and 2% QoQ to INR 827.92 Cr. 

Info Edge is an online classifieds company in India, known for its diverse portfolio that includes leading platforms like Naukri.com, 99acres.com, Jeevansathi.com and Shiksha.com. 

Info Edge counts listed giants such as foodtech major Zomato, insurtech startup PB Fintech, and unlisted edtech company Adda247 in its portfolio.

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IT giant Infosys is investing INR 17 Cr (about $2 Mn) in Bengaluru-based spacetech startup GalaxEye’s ongoing Series A funding round to acquire a minority stake.

In an exchange filing, Infosys said that the investment will be made through the Infosys Innovation Fund, which focuses on collaborating with artificial intelligence and deeptech startups to develop next-generation solutions for its clients. 

The transaction is set to be completed by September 30, following which the IT company will own a minority stake, not exceeding 20% of the outstanding share capital of the startup.

Last month, the startup raised INR 55 Cr (around $6.5 million) from investors including Mela Ventures and Speciale Invest. Other participants in the funding round include Rainmatter Capital, Navam Capital, Faad Capital, Anicut Capital, and drone tech startup ideaForge. 

CEO Suyash Singh then said that the funds would facilitate the launch of the startup’s first satellite, the Drishti Mission, by mid-2025. 

GalaxEye then said that it would close the funding round by September.

In July, dronetech startup ideaForge also invested INR 8.28 crore in GalaxEye in its Series A round with an eye on developing drone-based sensors capable of penetrating fog and foliage.

Founded in 2021 by Singh, Denil Chawda, Kishan Thakkar, Pranit Mehta, and Rakshit Bhatt, GalaxEye aims to build the world’s first multi-sensor earth observation satellite, alongside a constellation of indigenous micro-satellites with advanced data fusion capabilities.

Backed by the likes of Speciale Invest, LetsVenture and Mela Ventures, the startup has raised more than $10 Mn in funding till date.

Meanwhile, the fundraise, comes at a time when the Indian spacetech ecosystem is witnessing a major boom on the back of government policies and liberalised space rules. As per Inc42 data, India is home to over 150 spacetech startups, including notable names like Pixxel, Agnikul, and Skyroot. The sector has benefited from government initiatives and the active involvement of venture capitalists, fostering a robust ecosystem. 

Between 2014 and 2023, Indian spacetech startups raised over $285 Mn in funding, reflecting growing investor confidence in the sector, which is projected to present opportunities exceeding $77 Bn by 2030.

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Telecom major Reliance Jio faced a severe outage across its network on Tuesday (September 17). Many users took to social media platform X to report that they were facing issues with making calls or using the internet. 

According to outage tracker website Downdetector, more than 10,000 users reported that they weren’t receiving any signals, having troubles with JioFiber and accessing mobile internet. 

Confirming the issue, a Jio spokesperson told Reuters, “This morning, some Jio customers in Mumbai faced problems in availing seamless services on account of minor technical issues. The same has been resolved, and seamless services of Jio have been fully restored. We regret the inconvenience to our subscribers.”

Citing a source, the report said that a fire incident in the morning at the Jio IDC Data Centre was the reason behind the disruption of services. 

It is pertinent to note that Jio is the biggest player in the Indian telecom market. In its annual report, Reliance Industries Ltd said that Jio commanded a 60% share in India’s overall data traffic in the financial year 2023-24. 

Further, the company said that Jio’s broadband services facilitated 5.5 Tn minutes of voice calls in the prior fiscal year. Besides, average per capita data and voice usage stood at 28.7 GB and 1,008 minutes per month, respectively, in FY24. 

Its customer base stood at 48.97 Cr at the end of the June quarter (Q1 FY25), an increase of 9% from 44.85 Cr a year ago. The number stood at 48.18 Cr at the end of Q4 FY24.

Jio posted a 12% year-on-year (YoY) increase in its consolidated net profit to INR 5,698 Cr in the first quarter of the financial year 2024-25 (FY25). Revenue from operations grew 13% YoY to INR 29,449 Cr in Q1 FY25. On a sequential basis, operating revenue grew 2% from INR 28,871 Cr.

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With the Gujarat International Finance Tec-City decking up to embrace the flourishing fintech industries, tech giants Infosys and Wipro will reportedly be among the first Indian software companies to roll out their fintech hubs in the GIFT City.

As per ET’s report, both the companies have taken large office spaces in the GIFT City’s International Financial Services Centre (IFSC) for setting up their operations under the TechFin framework, focused on financial technology services to cater to their global clients.

Prime Minister Narendra Modi reviewed this development, along with other key issues, during his visit to GIFT City, the report said.

The GIFT City TechFin framework is part of the broader efforts by India’s International Financial Services Centres Authority (IFSCA) to foster innovation in financial services, added the report.

In June, K Rajaraman, chairman of International Financial Services Centres Authority (IFSCA) revealed that the regulator will notify revised norms for direct listing of companies at Gujarat International Finance Tec (GIFT) City in the following months.

In July, last year, Finance Minister Nirmala Sitharaman announced that the government would allow direct listing of Indian companies at GIFT- IFSC exchanges. 

Infosys and Wipro will be starting their fit out work soon and are expected to commence their operations from these offices in the following months, the report said.

Infosys made an initial commitment for 105,000 sq ft, while Wipro for 26,400 sq ft.

“With software technology giants such as Infosys and Wipro taking the lead, we expect at least 30,000 to 40,000 jobs to be created in GIFT City in the category of financial technology soon,” Savvy Group chairman and managing director Jaxay Shah was quoted as saying in the report.

Few months ago, the Gujarat government signed a memorandum of understanding (MoU) with big tech major IBM to set up an artificial intelligence (AI) cluster at the Gujarat International Finance Tec (GIFT) City.

Meanwhile, the International Financial Services Centres Authority (IFSCA), the regulatory body for GIFT City is also actively looking at reverse flipping Indian startups back to India – especially to GIFT City. 

GIFT City, established between Ahmedabad and Gandhinagar, has offered its space to global tech giants such as Google, IBM and Oracle to set up their offices. It is currently targeting to attract various business sectors such as automobile, fintech, capital market, biotech, and more to set up their workspaces there. 

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Days after allotting 38,946 equity shares under its employee stock option plans (ESOP) 2018, drone manufacturing startup ideaForge has now allotted additional equity shares under the same plan.

As per the company’s statement, ideaForge has now approved the allotment of 3,936 equity shares for the exercise of vested options under its ESOP 2018.

“… the executive committee of the board of the ideaForge Technology Limited (Company) on September 16, 2024 has approved the allotment of 3,936 equity shares having face value of INR 10/- each towards the exercise of vested stock options,” the statement added.

The startup has set the exercise price at INR 10 per share.

Based on ideaForge’s closing price on Friday (September 13) trading session, these allotted stocks are valued at INR 27.41 Lakh.

Following the allotment of these shares, the startup’s paid-up capital saw a marginal increase to INR 43,02,88,360 from INR 43,02,49,000.

At 2:06 PM, ideaForge shares were trading up 2.14% at INR 711.45 on BSE today (September 16).

This comes back of JM Financial initiating coverage on the startup with a ‘buy’ rating. The brokerage firm also said that  the startup is set to benefit from the government’s “positive” policy push and increase in drone adoption across sectors in the country.

Few months earlier, under its ESOP 2018 pool expansion, the company allocated 1,678 equity shares to its employees. 

Founded by Ankit Mehta, Ashish Bhat, Rahul Singh, and Vipul Joshi in 2007,ideaForge is a drone manufacturing startup that makes unmanned aerial vehicle (UAV) systems for inspection, surveillance and mapping. Its offerings span across sectors such as defence, construction, mining and agriculture.

The company recently bought an undisclosed stake in Bengaluru-based spacetech startup GalaxEye Space for INR 8.28 Cr. With this acquisition, the company looks forward to developing drone-based sensors for fog and foliage penetrations, the company added.

On the contrary, ideaForge posted an almost 94% decline in its profit after tax (PAT) to INR 1.2 Cr in FY25 from INR 18.9 Cr in the previous year’s quarter, hurt by lower revenue and surging in spending towards cost of materials.

On a quarter-on-quarter (QoQ) basis, the company’s PAT declined 87% from INR 10.3 Cr in Q4 FY24. 

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JM Financial has initiated coverage on listed drone manufacturer ideaForge with a ‘buy’ rating, saying the startup is set to benefit from the government’s “positive” policy push and increase in drone adoption across sectors in the country.

Despite the recent decline in its share price and weak earnings reports, the brokerage has set a price target of INR 845, which implies a 21% upside to its last close of INR 696.55 on the BSE. 

Shares of ideaForge jumped 2.1% to INR 711.25 on the BSE during the intraday trading session today (September 16).

JM Financial analysts in their research report pointed out that ideaForge is one of the early entrants into the drone industry in India and the first one to locally develop vertical take-off and landing (VTOL) drones. Besides, its core strength is in new technology and product development and one of the few OEMs globally to have its proprietary autopilot sub-system and ground control software like BlueFire Touch, ground control station software, enabling safe and autonomous surveillance and mapping operations.

“ideaForge’s core strength of technical know-how and new technology and product development capability is supplemented by increasing adoption of drone usage by defence and non-defence space. Strong long-term client relationships and focus on exports augur well for the company to capitalise on upcoming opportunities,” said the analysts. 

However, JM Financial believes there will be a slowdown in the near term, primarily due to delays in order booking. It sees ideaForge’s order inflows to start picking up from H2 of the current fiscal (FY25), which will lead to revenue pickup from FY26.

It is worth noting that the startup posted a 94% decline in its profit after tax (PAT) to INR 1.2 Cr in Q1 FY25 from INR 18.9 Cr in the previous year’s quarter. This was also an 87% decline from INR 10.3 Cr posted in PAT in Q4 FY24.

Meanwhile, ideaForge’s operating revenue fell 11.2% year-on-year and  15.7% quarter-on-quarter to INR 86.2 Cr in Q1 FY25.

ideaForge’s CEO Ankit Mehta said during the last quarterly earnings announcement that the company was able to successfully complete the Early Adopter Program (EAP) with customers in the US and received positive feedback, which indicated confirmed orders from that geography in the coming days. 

JM Financial has noted the company’s success in the US market will also open up opportunities in other geographies like Africa. 

Shares of ideaForge are trading around 16% lower year to date.

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After buying a land parcel worth INR 520 Cr in Pune, big tech major Microsoft has now reportedly purchased another 16.4 acre plot in the city’s tech hub Hinjewadi for a consideration of INR 453 Cr. 

With this, the company has acquired more than 30 acres of land in Pune in the past one month for a total investment of INR 973 Cr. 

As per Economic Times, the deal for the 16.4 acre plot was registered on September 5, adding that Microsoft paid a stamp duty of INR 27.18 Cr and a registration fee of INR 30,000 for the deal. Property registration documents reportedly showed that the company bought the land from an entity called Viva Highways Limited.

This follows a similar transaction, registered on September 6, wherein Microsoft acquired a land parcel spread over 13.6 acres for nearly INR 520 Cr, including stamp duty worth INR 31.18 Cr.

While there was no official clarity on the reason behind the deal, Microsoft, in the recent past, has been aggressively investing in India’s real-estate to set up data centers and “development hubs”.

For instance, the company acquired a 25-acre land parcel through a long-term lease in Pune in 2022 through an agreement with Finolex Industries. Microsoft plans to establish a hyperscale cloud capacity data centre with a built-out capacity of 100 MW on the plot.

More recently, the big tech major also recently inked a pact with the Telangana government to develop a large data centre in Hyderabad. It is also mulling investing more than INR 15,000 Cr in its upcoming data centres in the state. 

It is pertinent to note that more and more big tech companies are making a beeline to set up data centres in India to cater to the growing demand for cloud services in India. Additionally, the demand has also been driven by more and more businesses moving online, growing data usage, the onset of 5G and data localisation mandates.

Additionally, as online penetration increases, companies are also setting up data centres in India to capitalise on growing avenues such as digital payments, gaming, among others. 

Besides Microsoft, Google too has been either acquiring or leasing land parcels in India in droves. Earlier this year, Google was said to be in advanced talks to buy a 22.5-acre land parcel in Navi Mumbai’s Juinagar to build the tech giant’s first-ever captive data centre in India for INR 850 Cr. 

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In a bid to capitalise on the momentum in the Indian semiconductor landscape, L&T Semiconductor Technologies (LTSCT) has entered into a research and development collaboration with tech major IBM to design advanced processors. 

In a joint statement, the companies said that the scope of the partnership will include processor design for edge devices and hybrid cloud systems, as well as for areas like mobility, industrial, energy, and servers. 

“Leveraging our collective strengths and advanced capabilities, we are dedicated to working with key public and private collaborators to advance what’s next in semiconductor and processor design technologies,” IBM Semiconductors’ general manager Mukesh Khare said. 

The partnership announcement comes almost a year after IBM signed a memorandum of understanding (MoU) with the India Semiconductor Mission to accelerate innovations in the field of semiconductor technology. Besides, it also signed an MoU with Centre for Development of Advanced Computing (C-DAC) to collaborate on a joint working group to accelerate processor design and manufacturing for High Performance Computing (HPC) in India.

On the other hand, construction giant L&T’s semiconductor arm LTSCT claims to be India’s first semiconductor product company. It aims to build an India-based semiconductor portfolio of smart devices across MEMS sensors, power, analog mixed signal and RF products to support automotive, industrial, energy and telecommunication verticals.

The company also signed an MoU with C-DAC last week to jointly develop India-driven chip technology and the ecosystem around it. Besides, it also entered into a similar arrangement with IIT-Gandhinagar for collaboration on futuristic semiconductors research and development.

On the partnership with IBM, LTSCT CEO Sandeep Kumar said “The goal of our work with IBM is to harness our cutting-edge semiconductor design technology and IBM’s advanced processors to forge next-gen technology products.”

The two semiconductor majors have joined hands at a time when India’s semiconductor space is buzzing with activities. Earlier in the day, it was reported that the Central government is looking to foster the budding ecosystem by broadening the scope of ISM.

On Monday, the US state department said that it would partner with the India Semiconductor Mission to explore “opportunities to grow and diversify” the global semiconductor ecosystem.

Recently, the Centre also approved the proposal of Kaynes Semicon to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr.

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Microsoft has appointed former Amazon Web Services (AWS) executive, Vaishali Kasture, as the new general manager of its small, medium and corporate (SMC) business in India and South Asia.

Kasture, in a LinkedIn post, said, “I cannot think of a better time to take up the role as GM for the SMC business in India and South Asia. At a time when corporates and SMBs are harnessing the power of technology for everything from Cloud to AI, data to security, enriching every workflow with Gen AI as the go-to tool for productivity uplift, Microsoft is singularly positioned as a full-service technology company focussing on end-to-end technology stack.”

As per a Moneycontrol report, Microsoft India and South Asia head Puneet Chandok announced the appointment in an email to employees. 

“I am delighted to welcome Vaishali Kasture as the SMC lead for India and South Asia. SMC is at the heart of India’s digital transformation journey and Vaishali joins us at a pivotal moment as we build AI for everyone and copilot India & South Asia’s AI transformation,” Chandok reportedly said in the email. 

An alumnus of Mumbai’s Sydenham College of Commerce and Jamnalal Bajaj Institute of Management Studies, Kasture previously worked with companies such as Deloitte, CitiBank and Goldman Sachs. 

She brings over 25 years of experience across corporate and investment banking, credit, outsourcing and technology. At AWS, she set up the independent software vendors (ISV) segment and led the digital native and enterprise segments.

She stepped down as the interim country head of AWS India in December last year. She is the second AWS India executive that Microsoft has poached in the past one year. In June last year, the big tech major roped in ex-AWS India head Puneet Chandok as the corporate vice president of Microsoft India and South Asia.

Kasture’s appointment comes as Microsoft looks to strengthen its position in the Indian cloud market, take on giant AWS, and complement its expansion plans in the country. Microsoft plans to establish its largest India data centre in Hyderabad with an investment of INR 15,000 Cr spanning 15 years.

Microsoft competes with the likes of AWS and Google Cloud in the competitive cloud computing space. As more and more businesses move online and the demand grows for cloud products, the big tech majors are vying for a piece of the growing market. 

As per a report, the Indian cloud services market is projected to reach a market size of $24.2 Bn by 2028.

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At the 47th annual general meeting of Reliance Industries Ltd (RIL), chairman and managing director Mukesh Ambani announced the launch of a new feature called ‘Jio Phone Call AI’, which allows users to record and save any phone call on the Jio Cloud.

The newly-unveiled feature enables users to transcribe speech into text and translate them across multiple languages. With Jio Phone Call AI, users can also record and share important conversations.

Ambani made a number of new announcements related to AI. Highlighting the role of the technology, he said, “Birth of AI has opened up opportunities to address multiple issues facing mankind.” 

The billionaire also announced that RIL’s digital giant Jio Platforms is developing an artificial intelligence (AI) service platform called Jio Brain.

Jio Brain is a comprehensive suite of AI platforms and tools, currently being tested within all Reliance group companies. After ironing out the kinks, the company plans to roll it out to enterprises in the coming days.

Ambani said that Jio is integrating generative AI into all its processes and offerings, creating end-to-end workflows with real-time, data driven insights and automation.

Further, Jio will also launch an AI platform for merchants and small businesses called AI Vyapar. Meanwhile, Jio Institute is building an AI program to upskill workers.

During Reliance’s AGM, Ambani also introduced the concept of connected intelligence, a cloud infrastructure that will enable users to access cloud AI services from anywhere on any device, over low latency.

RIL is also laying the groundwork for a pan-India infrastructure and plans to launch Gigawatt-scale AI-ready data centres in Gujarat’s Jamnagar, Ambani said.

Further, he also announced that the company is looking to partner with leading global tech companies and innovators to bring more advanced AI tools to India. 

“Our goal is to create the world’s lowest AI inferencing cost in India, making AI accessible to all,” he said. 

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Oil-to-telecom conglomerate Reliance Industries Ltd’s (RIL’s) digital giant Jio Platforms is developing an artificial intelligence (AI) service platform called Jio Brain, chairman and managing director Mukesh Ambani said at the company’s 47th annual general meeting.

Jio Brain is a comprehensive suite of AI platforms and tools, currently being tested within all Reliance group companies. After ironing out the kinks, the company plans to roll it out to enterprises in the coming days.

Ambani said that Jio is integrating generative AI into all its processes and offerings, creating end-to-end workflows with real-time, data driven insights and automation.

Further, Jio will also launch an AI platform for merchants and small businesses called AI Vyapar and is developing an AI program in partnership with Jio Institute to upskill workers.

Meanwhile, Jio has rolled out a new feature called Jio Phone Call AI, which allows users to record and save any phone call on the Jio Cloud.

During Reliance’s AGM, Ambani also introduced the concept of connected intelligence, a cloud infrastructure that will enable users to access cloud AI services from anywhere on any device, over low latency.

RIL is also laying the groundwork for a pan-India infrastructure and plans to launch Gigawatt-scale AI-ready data centres in Gujarat’s Jamnagar, Ambani said.

Further, he also announced that the company is looking to partner with leading global tech companies and innovators to bring more advanced AI tools to India. 

“Our goal is to create the world’s lowest AI inferencing cost in India, making AI accessible to all,” he said. 

RIL is also laying the groundwork for a pan-India infrastructure and plans to launch Gigawatt-scale AI-ready data centres in Gujarat’s Jamnagar, Ambani said.

Further, he also announced that the company is looking to partner with leading global tech companies and innovators to bring more advanced AI tools to India. 

“Our goal is to create the world’s lowest AI inferencing cost in India, making AI accessible to all,” he said. 

Additionally, Ambani also announced the launch of the Jio AI-Cloud Welcome Offer. Users can avail of this offer and get 100 GB of free cloud storage space to securely store and access photos, videos, documents, and other digital content and data.

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Telecom major Bharti Airtel is reportedly looking to shut its music streaming platform Wynk Music in a couple of months.

According to a report by PTI, the company will dissolve Wynk Music and absorb all its employees. 

“We can confirm that we will sunset Wynk Music and all Wynk music employees will be absorbed within the Airtel ecosystem. Airtel users will have access to Apple Music. Additionally, Wynk Premium users will receive exclusive offers from Airtel for Apple,” a company spokesperson told the news agency. 

Earlier in the day, Airtel said it has partnered with Apple to bring exclusive offers of Apple TV+ and Apple Music to its customers. The company said Wynk Premium users will roll into Apple Music and get exclusive offers.

Besides, the partnership will see Airtel Xstream customers gain access to Apple TV+ content as part of Airtel’s premium Wi-Fi and postpaid plans. The Apple Music and Apple TV+ offers will be available exclusively to Airtel customers in India soon. 

The latest development comes a decade after the launch of Wynk Music in 2014. At the time, it was one of the first music streaming platforms in India. It lets users download and listen to songs while offline. Its premium subscription comes at INR 99 per month. 

While Wynk was one of the early movers in India’s music streaming market, the market has seen a number of changes over the past decade. According to a report by Redseer, Spotify was the dominant player with the highest number of users between 2020-23. In FY23, Spotify commanded a 26% market share in the Indian online streaming market. 

As a result, other homegrown players have struggled to grow. Gaana.com, once Wynk’s arch rival, was acquired by Times Internet-owned Entertainment Network (India) Limited in December 2023 for INR 25 Lakh. 

YouTube Music, Amazon Music, JioSaavn are among the other players in the Indian music streaming market, which is projected to become a $660 Mn opportunity by 2027, as per Statista.

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Instant messaging platform Telegram is reportedly being scrutinised by the government over allegations of extortion and gambling. 

A Moneycontrol report, citing a government official, said that the Centre could mull banning the Dubai based app in India on the basis of the probe’s findings. 

The investigation is reportedly being led by the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA) and the Ministry of Electronics and Information Technology (MeitY).

“The I4C under MHA and MeitY have been looking into P2P communications on Telegram,” a government official told the publication.  

This isn’t the first time that the company has ended up in regulatory troubles in India. Earlier this year in January, the Delhi High Court (Delhi HC) ordered the platform to remove or block access to accounts allegedly used for cheating people by using the name of private equity firms Peak XV Partners and Sequoia Capital.

Its tenure in India has seen it land in multiple controversies throughout the year. For instance, reports back in 2019 highlighted that Telegram lacked proper cybersecurity against spyware and viruses for users. 

Besides, the platform is also a host to rampant piracy. In many such instances, the messaging app has escaped by evoking the Information Technology Act. Telegram has repeatedly claimed to be an intermediary and evaded any responsibility for the content being circulated.

The probe comes at a time when Telegram’s CEO Pavel Durov is also behind bars in France. Durov was arrested at the Paris airport over allegations that his messaging app facilitates criminality including money laundering and drug trafficking on August 25.

“It is absurd to claim that a platform or its owner are responsible for abuse of that platform,” Telegram said in a post on X after Durov’s arrest. 

However, investigations on Telegram come at a time when the government has upped the ante for players engaged in illegal activities like gambling or extortion which often sees platforms like Telegram becoming a conduit for bad actors to spread social malice. 

For a user to get involved in betting on Telegram, they have to join groups and channels where tipsters share their predictions. These can range from free advice to premium tips, depending on the tipster’s service

About a week ago, the directorate of enforcement (ED) initiated a crackdown on gambling apps operating in India by handlers settled abroad. More than two dozen offshore gaming applications are currently under ED’s scanner for remitting and round-tripping funds. These offshore gambling apps have caused gamblers to incur losses to the tunes of INR 1 Lakh Cr.

Besides, on August 19, conducted searches at 20 premises across multiple cities in connection with a money laundering probe into online betting platform “magicwin”.

Despite the Centre’s efforts to clamp down on online betting, India’s online gambling market is projected to touch the $5.49 Bn mark by 2032, as per a report by IMARC Group.

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Drone manufacturer ideaForge has allotted 38,946 equity shares for the exercise of vested stock options under its employee stock option plan (ESOP) 2018. 

“… the executive committee of the board of the ideaForge Technology Limited on August 13, 2024, has approved the allotment of 38,946 equity shares having a face value of Rs. 10/- each towards the exercise of vested stock options under the ideaForge Employees Stock Option Scheme, 2018,” the startup said in an exchange filing.

Shares of ideaForge ended Tuesday’s trading session 1.4% lower at INR 680.2 on the BSE. 

Following the allotment of these shares, the startup’s paid-up capital has increased to INR 43.02 Cr from INR 42.98 Cr earlier. The drone major has set the exercise price per share INR 10. 

Earlier this year, ideaForge allotted 1,678 equity shares in June and 95,954 shares in July under its ESOP programme. 

Founded in 2007 by Ankit Mehta, Ashish Bhat, Rahul Singh, and Vipul Joshi, ideaForge is a drone manufacturing startup that makes unmanned aerial vehicle (UAV) systems for inspection, surveillance and mapping. Its offerings span across sectors such as defence, construction, mining and agriculture.

The startup made its public market debut in July last year, listing at a premium of 94% to its issue price. 

In its annual report for the financial year 2023-24 (FY24), ideaForge outlined its plans to bolster its presence in the US and enter new markets to expand its exports. 

The startup has also been inking partnerships and looking at acquisitions to expand its offerings and shore up its top line. Last month, it entered into a partnership with drone tech startup TechEagle to scale up its unmanned aerial vehicle technology and drive innovation in the drone space.

Besides, it acquired an undisclosed amount of stake in Bengaluru-based spacetech startup GalaxEye Space for INR 8.28 Cr last month. 

On the financial front, ideaForge’s profit after tax (PAT) slumped 94% to INR 1.2 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) from INR 18.9 Cr in the year-ago quarter. Sequentially, PAT declined almost 87% from INR 10.3 Cr in the preceding quarter – Q4 FY24. 

Its operating revenue also fell 11.2% to INR 86.2 Cr during the quarter under review from INR 97.1 Cr in Q1 FY24. On a QoQ basis, it declined 15.7%.

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Barring regulatory approvals, Bharti Group-backed satcom services provider OneWeb claims to be ready to roll out the satellite broadband service in the country.

Touting operational readiness of the company, parent Bharti Group chairman Sunil Mittal on Monday (August 12) said that it is awaiting nod from the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) to commence operations. 

He also said that the company has approached the government to accelerate the process of granting these approval to the satcom operator. 

“It is ready to go now…the satellites are all spinning around India all the time…we are now just waiting for a signal from the DoT to light up those SNPs (satellite network portals) for commercial service, and it could be anytime…We have requested the government to accelerate the process because it is much-needed, especially by the government agencies in difficult remote areas,” Mittal said as per news agency PTI.

For the uninitiated, the company is a joint venture between Bharti Enterprises and French satellite operator Eutelsat.

In a virtual address on the sidelines of Bharti Global acquiring a 25% stake in British telecom major BT Group, Mittal reportedly said that Eutelsat OneWeb’s two satellite network portals (SNPs) are ready and are located in northern and southern parts of the country.

As per the report, he said that the company has already conducted tests to demonstrate proof of concept to the Army, Navy and other government agencies. He expects the approvals to come “anytime” soon.

“The terminals are in India, we are just waiting…there is nothing we can do because we can’t light it up other than our test case, which has been approved…we can’t go commercial until we have it (approvals),” he added.

While saying that DoT has already sent a reference to the TRAI to start the consultation on the matter and grant approvals to the company.

“…so as soon as the TRAI comes out…I would say we should be expected to get the approval…In fact, we have given an undertaking to DoT that you can even give us permission in the interim, and whatever the final decision is, we will comply with that…It is a wait from DoT now. We are fully ready,” Mittal was quoted as saying.

This comes just days after Apple’s satcom partner Globalstar, in a submission to the TRAI, said that it was planning to apply for a licence to offer satcom services in India. GMPCS, or global mobile personal communication by satellite services, licence is the first step towards launching satcom services in India. 

So far, only Bharti Group-backed Eutelsat OneWeb and Reliance-owned Orbit Connect India have received the GMPCS licence and authorisation from IN-SPACe. However, the likes of global giants such as Elon Musk-led Starlink and Amazon-backed Project Kuiper too have sought authorisation from the government to offer satellite communication services in the country. 

At the heart of all this is the homegrown satcom space, which, as per the government, could be key to delivering internet services to 1.2 Bn Indians by 2025-26.

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Days after geotech company MapmyIndia’s parent entity CE Info Systems accused Ola Electric of illicitly copying its data to build its Ola Maps interface, the former’s CEO Rohan Verma has said that the quality of Ola Maps is not up to the mark and that Google’s pricing is inconsistent.

He expressed confidence about MapmyIndia’s market position amid Google slashing subscription prices for its maps platform and Ola announcing a new pricing structure to attract developers to Ola Maps.

“When it comes to pricing, we base it on the value we provide to our customers. We have always been price conscious. Unlike some competitors who fluctuate between offering services for free, charging high prices, or frequently changing their rates, we have been consistently predictable, reliable, and value-based for our customers,” said Verma in a post-earnings call.

It is important to note that while Google Maps and MapmyIndia are the two most dominant players in the mapping services space, Ola Maps entered the segment in June. Other notable competitors include Apple Maps, Dutch giant HERE Technologies, TomTom, MapBox and OpenStreetMaps.

“Regarding competition, there’s one type like Google, and then there’s the new entrant offering everything for free. Let them do it. Any serious user, I doubt, will consider using something that doesn’t work. As for Google reducing prices, we are not too concerned about that either. It seems they were responding to our pricing that’s what took them some time. It’s just a coincidence that the new entrant also made their move at the same time,” he said.

“And the second part is, we’ve been dealing with competition for so long, and the competition has often been arbitrary with pricing. We, however, have stayed close to our customers, pricing based on the value we provide and through mutual agreement,” Verma added.

He said that the increased noise and adoption in the mapping industry reinforces the company’s belief in becoming a disproportionate winner, adding that mapping is a challenging and serious business requiring long-term expertise, investment and a proven track record. Despite numerous global and Indian competitors over the years, only a few have succeeded, with MapmyIndia standing out for its accuracy and quality, he added.

The company is not only focused on maps but also innovating across multiple products and industries, including IoT and 4D solutions.

Commenting on whether its customers might switch to Ola Maps or Google Maps, Verma said that switching providers is not easy. 

He further mentioned that the company is on track to achieve a milestone of INR 1,000 Cr revenue by FY27 or FY28. 

“Our revenue projections are based on the growth in our open order book. While our business can experience some lumpiness, we are not concerned, as the overall trend indicates growth in the right direction,” he added.

MapmyIndia divides its market-wise revenue into two categories – automotive & mobility tech business (A&M) and consumer tech & enterprise digital transformation (C&E). It divides its product-wise revenue into two segments – map & data and platform & IoT. 

The geotech company’s consolidated profit after tax (PAT) declined 6% on a quarter-on-quarter (QoQ) basis to INR 35.9 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25). Operating revenue declined 5.1% QoQ to INR 101.5 Cr.

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Info Edge cofounder Sanjeev Bikhchandani said that the company is currently not looking to exit any of its portfolio companies. 

Info Edge counts listed giants such as foodtech major Zomato, insurtech startup PB Fintech as well as unlisted edtech company Adda247 in its portfolio. His comments come at a time when the shares of listed companies in Info Edge’s kitty have surged on the bourses and have grown multifold in the past one year.

Speaking during the company’s post-earnings call, Bikhchandani said, “If we believe there’s substantial growth and consequent value creation left, we think it’s better for long-term value creation for our shareholders. We’ll probably stay. As of now, there is no plan to exit”.

Citing his “past experiences”, he said it is prudent to stay invested for a long time before “truly” getting the value of one’s bets. 

“Past experience and evidence tell us that in India, if you enter at an early stage, you need to be patient. When you look at Zomato, we entered in 2010, and with Policybazaar, we entered in 2008, and we are still there. The significant value has come in the last three or four years, which means that you need to stay invested for a long time before you truly get the value,” he reportedly added. 

He also said, “If something blows up, you will obviously exit earlier. If there is a great acquisition offer that comes along and if the founder wants to take it, you can’t really block that because you have to back the founder”.

As per Info Edge’s financial results for the quarter ended June 2024, the investment firm was sitting on gains to the tune of INR 2,189 Cr on its fair value of investment Zomato at the end of June 2024. 

Meanwhile, it was also sitting on gains worth INR 749.4 Cr on its investments in insurtech major Policybazaar’s parent PB Fintech at the end of the quarter under review. 

As per the BSE data, Info Edge overall owns 13% stake in Zomato worth INR 31,886 Cr. On the other hand, the investment major’s stake in PB Fintech is valued at north of INR 8,351 Cr. 

This comes at a time when the stocks of Zomato and PB Fintech have been on a rise. For context, the foodtech major’s shares have soared 183.84% in the past 12 months while the insurtech giant’s shares are up 82.9% on a year-to-date (YTD) basis. 

This has largely come on the back of back-to-back profitable quarters reported by the two companies and a healthy growth in their respective top lines. 

Earlier today, Info Edge announced its financial results for the quarter ended June 2024. The online classified company’s profit zoomed 75% year-on-year (YoY) to INR 258.85 Cr during the quarter, while revenue from operations grew 20% to INR 827.92 Cr. 

Shares of Info Edge closed 4.21% higher at INR 7,205.90 on the BSE on Friday (August 9).

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Geotech company MapmyIndia’s consolidated profit after tax (PAT) declined 6% on a quarter-on-quarter (QoQ) basis to INR 35.9 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) amid a ramp down of some old auto original equipment (OE) customers and some other changes in its IoT-led business during the period.

MapmyIndia posted a PAT of INR 38.2 Cr on an operating revenue of INR 106.9 Cr in the preceding March quarter of the previous fiscal year.

In Q1 FY25, the startup’s operating revenue also declined 5.1% QoQ to INR 101.5 Cr.

However, on a year-on-year (YoY) basis, MapmyIndia’s PAT increased 12.1% from INR 32 Cr and operating revenue increased 13.5% from INR 89.4 Cr.

The startup said in a statement, “During Q1 FY25, there were known ramp down of some old Auto OE programs. (The) ramp-up of new programs has begun in Q2.”

“Also, IoT-led business prioritised higher-margin SaaS instead of new hardware sales,” the statement added.

MapmyIndia divides its market-wise revenue into two categories – automotive & mobility tech business (A&M) and consumer tech & enterprise digital transformation (C&E). It divides its product-wise revenue into two segments – map & data and platform & IoT. 

Commenting on the Q1 performance, Rakesh Verma, chairman and MD of the company, said, “Our map-led business demonstrated strong growth of 17.2% and EBITDA margins of 50.1%. Our IoT-led business, as per our focus, showed tremendous growth of 89.6% in its high-margin SaaS revenue. During Q1 FY25, we also expanded the capabilities and addressable market for MapmyIndia to cover AI-driven data analytics and consulting needs of customers across industry verticals, and this will be beneficial to MapmyIndia in the time to come.” 

Meanwhile, during the quarter, MapmyIndia’s A&M revenue grew 9.5% YoY to INR 45 Cr and C&E revenue jumped 16.9% YoY to INR 56.5 Cr.

In the C&E segment, its major go-lives included the UP Police’s Dial 112 GenNext project and a project for the Indian army. Besides, the startup said that it had multiple wins in ecommerce, quick service restaurant, and delivery and mobility space for use cases such as location-based app personalisation and accurate address capture for delivery efficiency.

In A&E, its key go-lives included Mahindra XUV3XO, Ampere Greaves Nexus, Ultraviolet F77 Mach 2 electric Bike, and BYD Atto 3.

“New customer acquisition as well as up-sell and cross-sell of newer use cases and solutions to existing customers were on track, with key wins and go-lives across all our customer segments including automotive, fleets, new-age tech companies and traditional corporates, and the government, including defence,” said company CEO Rohan Verma, commenting on the Q1 earnings.

MapmyIndia said that its growth focus and outlook for all areas of business remain strong, and its long-term achievement goals are on track.

It is also pertinent to note that apart from its own books, the share of loss from KOGO, in which MapmyIndia holds a majority stake, stood at INR 38 Lakh in Q1 FY25, widening from a loss of INR 15 Lakh in the year-ago period. Similarly, the share of loss from Indrones stood at INR 18 Lakh in the reported quarter.

Where Did MapmyIndia Spend?

MapmyIndia’s total expenses increased 14.4% YoY but fell almost 12% QoQ to INR 63.9 Cr in Q1 FY25, with employee benefit expenses being the biggest cost head during the quarter.

Employee Cost: The startup’s cost under the head jumped almost 20% to INR 20.7 Cr during the quarter under review from INR 17.3 Cr in Q1 FY24.

Cost Of Materials: On a YoY basis, MapmyIndia’s expense in this bucket declined 26.6% to INR 10.4 Cr in Q1 FY25 while it fell a massive 53% QoQ.

Its cost of materials includes both hardware and software. While the cost for software materials increased on YoY as well as QoQ basis, it declined sharply for hardware materials.

Technical Services Outsource:  MapmyIndia spent INR 11.6 Cr under this head in Q1, which increased 48.7% YoY.

Marketing & Business Promotion Expenses: The company spent INR 2.2 Cr in this bucket, which increased 30.5% from INR 1.7 Cr in Q1 FY24.

Ahead of its Q1 FY25 earnings, shares of MapmyIndia rose over 2% to close at 2,226.9 on the BSE.

Meanwhile, it is worth noting that MapmyIndia recently sent a legal notice to electric two-wheeler major Ola Electric accusing the company of illicitly copying its data to build its Ola Maps interface.  

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