TCS chief; India will have more than 250 unicorns by 2025

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Over the next five years and more, technology will be the main driver of investments worldwide, Rajesh Gopinathan, CEO of Tata Consulting Services (TCS) told ETtech in an interview. He expects volatility due to geopolitical conflicts and possible disintegration of the global economy, in fact to stimulate demand for certain technologies.

Also in this bulletin:
■ Technology that will push investments globally: TCS chief
■ Indian food delivery beats UrbanPiper
■ India will have 250+ unicorns by 2025: Report


Technology that will push investments globally for many more years: Rajesh Gopinathan, president of TCS

In an interaction with ET, Rajesh Gopinathan said that cybersecurity, creating flexible and adaptive supply chains, various forms of data protection and sovereignty issues will emerge as “major drivers for technology spending globally.”

  • “The theme that technology will be an increasing percentage of (business) spending is unlikely to be questioned for many years to come,” said TCS CEO and general manager.

India’s largest software services company is targeting “profit-driven growth” as it will double its revenue to $50 billion by the end of the decade. “We are closer to a bicycle than a sports car. It’s not about speed, we know that organic growth and balance is more important than sport,” said Gopinathan.

Also Read: TCS Q4 consolidated net profit up 7.4% YoY, matching forecasts

The $25.7 billion software giant expects double-digit growth to match 26-28% margins.

Report: In fiscal 2022, TCS grew 15.9% on record full-year deal gains of $34.6 billion, accounting for nearly a third in the last quarter. By comparison, competitor Infosys grew 19.7%, but achieved a 23% lower operating margin compared to the 25.3% reported by TCS.

Also Read: Globalization’s poster child, Infosys faces political headwinds


Rivals Swiggy and Zomato buy back UrbanPiper in a $24 million funding round

Urban Piper

UrbanPiper founders (from left) Manav Gupta, Saurabh Gupta and Anirban Majumdar

UrbanPiper, a restaurant management platform, has raised $24 million in a new funding round led by food collection giants Swiggy and Zomato, alongside existing investors Sequoia Capital India and Tiger Global. This is the first time both of these food delivery giants are investing in a venture together.

What will the funds be used for? The company plans to use the funds raised to scale its product and engineering teams, strengthen its platform capabilities, and expand its offerings to provide more services to restaurants.

Angel investors include Zomato and Pankaj Chaddah, co-founder of Shyft; Ankit Nagori, founder of Curefoods; and Saahil Goel and Vishesh Khurana, founders of Shiprocket, among others.

Quotation: “With this investment, we will continue to expand UrbanPiper’s offerings and strengthen our platform capabilities to meet many more digital opportunities in the restaurant ecosystem,” said UrbanPiper CEO Gupta.

Microsoft joins Udaan’s debt financing round: Microsoft Corporation has participated in Udaan’s debt financing round of more than $200 million, according to a memo sent to employees by Aditya Pande, CFO of the business-to-business (B2B) e-commerce company. With this, Udaan has now raised a total of $225 million in convertible notes.

udaan founders

Udaan co-founders (from left to right) Amod Malviya, Vaibhav Gupta and Sujeet Kumar

“We are excited to announce that Microsoft Corporation has joined our convertible note offering, which was launched in October last year. In an internal note to Udaan, Pande joined convertible bonds from M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samena Capital and Ishana Capital, among others.

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ETtech Done Deals

deal done

■ Deeptech virtual recruitment platform Expertia AI has raised $1.2 million in a funding round led by marquee investors Chiratae Ventures and Endiya Partners, with participation from Entrepreneur First and angel investor Archana Priyadarshini. The startup plans to use the funds to build a team of artificial intelligence (AI) researchers and software engineers, and to create brand and product awareness in the Indian market.


India likely to print more than 250 unicorns by 2025: Report

Unicorn

With 2021 being a turning point for startup investments, India is now expected to have more than 250 unicorns or private ventures by 2025, according to a report by investment fund Iron Pillar.

It’s all about numbers: According to the report, the total value of Indian unicorns is $535 billion. With close to 130 Indian unicorns, including those based outside of India, the venture capital fund said total unicorns in the country have more than doubled in the last 15 months alone to reach 130. Indian startups raised $36 billion in venture capital in 2021, making it an important year for fundraising as a group of tech firms went public on Indian stock markets.

indian unicorns

Despite the ‘wait and watch approach’ by private market investors due to global macro trends, Indian startups raised over $10 billion in the first quarter of 2022, up from $5.7 billion in the same period in 2021. Data from Venture Intelligence.

Also Read: ETtech Vision – Let’s redefine unicorns

Indian startups

Quotation: “The total number of unicorns made from India has more than doubled from 62 to 130 in the last 15 months. While we believe this pace may slow slightly in the next 24 months, creating 250 companies with valuations of over $1 billion by 2025 is a highly achievable goal for Indian founders. We are particularly bullish as almost 50% of companies of this scale also build for markets outside India, Iron Pillar managing partner Anand Prasanna said on Monday.


After Musk, Jack Dorsey slams Twitter’s board amid takeover pressure

jack trailer

While Tesla and SpaceX CEO Elon Musk pressured the Twitter board to allow it to buy the microblogging platform for $43 billion, co-founder Jack Dorsey eventually broke the silence and labeled the board as “constantly dysfunctional of the company”. “.

The former Twitter CEO agreed with venture capitalist Gary Tan, who wrote that a poorly managed board “could literally wipe out a billion dollars in value.”

Dorsey, who left Twitter in November last year and handed the task to Indian-born Parag Agrawal, will remain on the board of directors with his 2.2% stake until next month.

Meanwhile, Musk said the Twitter board needs to be more concerned with potential bidders than making a fair bid to buy 100% of the microblogging platform for $43 billion.

Affiliate model: Asset management firm Vanguard Group announced last week that its funds hold a 10.3% stake in Twitter, making it the largest shareholder. Saudi Prince Al-Waleed bin Talal, who rejected Elon Musk’s offer, has about 5.2% of Twitter. Musk is one of Twitter’s largest shareholders, with a 9.2% stake. Meanwhile, the Twitter board has adopted the ‘poison pill’ strategy to prevent Musk from buying it by force.


Larsen considers merging Mindtree & L&T Infotech into a $22 billion company

mind tree

According to the news Bloomberg based on sources, Larsen & Toubro Ltd. Mindtree Ltd. and Larsen & Toubro Infotech Ltd. Mindtree Ltd., two software units controlled by Mumbai-based engineering firm. and Larsen & Toubro Infotech Ltd. may consider share swap rates for the merger early next week.

Deal details: The two companies have minimal overlap in businesses or customers, and a link will give them better pricing power and lower costs. Negotiations around the merger are ongoing and the plan may be delayed or disbanded, according to the Bloomberg report.

Larsen acquired control of Mindtree in 2019. The holding owns approximately 61% of the company, which has a market value of $8.3 billion, and approximately 74% of L&T Infotech, which has a market value of $13.6 billion.

The planned merger comes at a time when software companies are facing increased demand from businesses embracing the accelerated digitization since Covid-19.

Mindtree’s response: “We would like to clarify that the news of a merger between Mindtree Ltd. and L&T Infotech is speculative in nature. In this regard, we would like to point out that there is no information required to be received with the company as of today. Reported and stock certificates under the current SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It could have an impact on the price.”

Mindtree Q4 net profit up 49%: The IT services firm said its consolidated net profit for the quarter ended March 2022 increased 49.1% to Rs 473.1 billion compared to Rs 317.3 billion in the same quarter last year. In turn, the profit figure rose 8.1%.

Revenue from operations for the quarter totaled 2,897.4 crore, up 37.4% from Rs 2,109.3 in the corresponding quarter a year ago. On a quarterly basis (QoQ), growth was 5.4%.

Today’s ETtech Top 5 newsletter is edited by Arun Padmanabhan in New Delhi and Aishwarya Dabhade in Mumbai. Graphics and illustrations by Rahul Awasthi.

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