IT Giants Acquire Indian Startups to Boost AI and Tech Capabilities Amid Funding Winter

2 Sources

Major IT firms are acquiring Indian startups specializing in AI, semiconductors, and other cutting-edge technologies to enhance their capabilities and valuations, providing a silver lining during the startup funding crunch.

News article

IT Giants Target Indian Startups for Strategic Acquisitions

In a notable trend amid the ongoing funding winter, major IT firms are increasingly acquiring Indian startups to bolster their technological capabilities and market valuations. This strategic move is particularly focused on startups specializing in cutting-edge technologies such as artificial intelligence (AI), semiconductors, data analytics, and space technology 12.

Key Acquisitions and Investments

Several high-profile acquisitions and investments have been observed in recent months:

  • IBM acquired Bengaluru-based SaaS startup Prescinto for an undisclosed amount 12.
  • Cyient, a Hyderabad-based IT engineering service provider, acquired a 27.3% stake in US-based Indian startup Azimuth AI for $7.25 million, aiming to expand its semiconductor industry capabilities 12.
  • Persistent Systems announced plans to acquire Pune-based data privacy management firm Arrka for Rs 14.4 crore 12.
  • Infosys committed to investing up to Rs 17 crore in space-tech startup GalaxEye Space Solutions 12.
  • Accenture acquired Bengaluru-based chip design startup Excelmax Technologies 12.
  • Infogain acquired US-based Indian startup Impaqtive 12.
  • Xoriant acquired Bengaluru-based cloud management solutions provider MapleLabs 12.

Strategic Rationale

Analysts suggest that these acquisitions are driven by several factors:

  1. Capability Enhancement: IT firms are strengthening their technological capabilities to prepare for the anticipated return of discretionary tech spending 12.

  2. Revenue Growth: By acquiring startups with innovative solutions, IT firms aim to boost their revenues and valuations. Avinash Vashistha, chairman of Tholons, explains, "If they invest $50 million in a startup, they get the potential to generate $350 million by selling these solutions to their larger client base" 12.

  3. Market Access vs. Innovation: While startups offer disruptive solutions but lack market access, IT firms have a large customer base but may lack innovative solutions. This synergy can significantly boost the acquirer's revenue and valuation 12.

  4. Talent Acquisition: These acquisitions also allow IT firms to acquire niche talent and learn how to hire similar talent directly in the future 12.

Impact on the Ecosystem

This trend is creating a win-win situation for both parties:

  • For Startups: They gain access to resources and a vast network of Fortune 1000 companies served by IT firms, especially crucial during the current funding crunch 12.

  • For IT Firms: They can quickly address gaps in their portfolios, particularly in high-value areas like design and AI, and access skilled resources that would typically take years to develop internally 12.

Future Outlook

As IT firms continue to navigate challenges in revenue growth, this "Solutions to Valuations" approach is likely to persist. The strategy not only helps in immediate capability enhancement but also positions these companies favorably for future market demands, especially in AI and other emerging technologies 12.

Explore today's top stories

Taiwan Adds Huawei and SMIC to Export Control List, Intensifying AI Chip Technology Tensions

Taiwan has blacklisted Chinese tech giants Huawei and SMIC, requiring Taiwanese companies to obtain export permits before selling goods to these firms. This move escalates the ongoing trade and technology tensions between Taiwan, China, and the United States in the AI chip sector.

Bloomberg Business logoReuters logoAP NEWS logo

9 Sources

Technology

15 hrs ago

Taiwan Adds Huawei and SMIC to Export Control List,

Tech Giants Race to Develop Revolutionary AI Device, Led by OpenAI and Jony Ive

OpenAI partners with former Apple design chief Jony Ive to create a groundbreaking AI gadget, as tech companies compete to define the future of AI interaction.

Tech Xplore logoFrance 24 logoEconomic Times logo

3 Sources

Technology

15 hrs ago

Tech Giants Race to Develop Revolutionary AI Device, Led by

AI and Space Lasers Revolutionize Forest Carbon Mapping for Climate Science

A groundbreaking study combines satellite data, space-based LiDAR, and AI algorithms to rapidly and accurately map forest carbon, potentially transforming climate change research and forest management.

ScienceDaily logoPhys.org logo

2 Sources

Science and Research

15 hrs ago

AI and Space Lasers Revolutionize Forest Carbon Mapping for

Chinese AI Companies Bypass US Chip Restrictions Through Innovative Data Center Rentals in Southeast Asia

Chinese AI firms are circumventing US chip export controls by renting data centers in countries like Malaysia, training AI models on high-end chips, and transporting data via hard drives.

Futurism logoWccftech logo

2 Sources

Technology

7 hrs ago

Chinese AI Companies Bypass US Chip Restrictions Through

Amazon to Invest $13 Billion in Australia's Data Center Infrastructure, Boosting AI Capabilities

Amazon announces a significant $13 billion investment in Australia's data center infrastructure from 2025 to 2029, aimed at expanding AI capabilities and supporting generative AI workloads.

Reuters logoEconomic Times logoMarket Screener logo

3 Sources

Business and Economy

23 hrs ago

Amazon to Invest $13 Billion in Australia's Data Center
TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

Β© 2025 Triveous Technologies Private Limited
Twitter logo
Instagram logo
LinkedIn logo