SOFTWARE FIRM
IT hiring: After prolonged slowdown, data signals green shoots
After months of subdued hiring numbers, IT companies are in for good news. Overall, tech hiring has seen a slight improvement in Q1, as per staffing firms, in line with expectations of some green shoots in demand. IT firms seem to be favouring experienced hires due to immediate project needs.
PE, VC funding slows in first half of 2024; secondary deals become prominent
Secondary stake sales and buyouts are driving most of the larger deals being made by private equity (PE) and venture capital (VC) funds in new-age firms, data from investment banking firm DC Advisory showed. In the first six months of 2024, when 37 deals took place in the $50-500 million range, 62% were secondary transactions or buyouts, with external primary investment rounds making up only 13%.
Peak XV has Rs 16,000 crore for investment; AI to be in focus: Rajan Anandan
Peak XV Partners, managing director Rajan Anandan said the company isn't facing any shortage of capital, they just want more people starting up in AI. "We have over 25 AI investments that we’ve made over the last 1-1.5 years,” he said. Peak XV Partners recently led a $10.5 million funding round in AI health startup Cloudphysician.
Spend management startup Dice raises $5 million from Dallas Venture Capital India Fund
Dice, an enterprise spend management startup, has raised $ 5 million in a funding round led by VC firm Dallas Venture Capital. The company will use the fresh capital for its go-to-market initiatives, like strengthening market penetration and customer outreach.
Persistent Systems buys US software firm Starfish Associates for Rs 173 crore
Persistent Systems said in a statement, "Known for its cutting-edge Enterprise Communications automation platform, Starfish Associates caters to the world’s largest enterprises including many Fortune 500 companies." Following the acquisition announcement on Wednesday morning, Persistent’s stock hit a 52-week high to 4,596 apiece rising over 2% on the BSE.
Q-comm audits; modest Q1 for IT firms
Happy Wednesday! Due to recent hygiene lapses by quick commerce, the government has intensified surprise inspections of their warehouses. This and more in today’s ETtech Morning Dispatch.
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Indian software sector earnings will remain modest in Q1: here’s why
Infosys and LTIMindtree are expected to lead a modest increase in average growth for Indian software service providers in the first quarter of FY25. However, previous top performers, Tata Consultancy Services (TCS) and HCLTech, may see pressure on profits and margins as they work to reignite growth.
Should you be rushing to pick up the latest AI smartphone?
Samsung leads the smartphone industry with cutting-edge genAI features, while Apple introduces the groundbreaking Apple Intelligence. Sundar Pichai unveils the innovative Gemini AI assistant, and Craig Federighi presents Apple Intelligence, reshaping the future of smart devices with powerful generative models.
Priyank Kharge meets IT minister Ashwini Vaishnaw, requests Centre's support for state's chip firms
Karnataka IT minister Priyank Kharge met Ashwini Vaishnaw, union IT minister, to seek support for the state's semiconductor and electronics space. Kharge said that the State has the highest share of 46% in India in housing innovative companies and contributes 10% of India's industrial output.
IT service exports should start diversifying in AI, cloud computing and data analytics, say industry players
As the IT service exports come out unscathed amidst a turbulent period for the world, industry players believe it’s time the service portfolio spread out.
Volkswagen's $5 billion investment in Rivian boosts EV maker's shares
Rivian secures vital funding through Volkswagen's investment, enabling the launch of new EV models. The partnership signifies a significant step towards technological advancement and financial sustainability in the competitive electric vehicle market.
US slaps sanctions on leaders of Russia software firm Kaspersky Lab
US imposes sanctions on Kaspersky Lab leaders, bans antivirus sales, citing national security risks and Russian government control.
Cybersecurity firm Kaspersky denies it's a hazard after the US Commerce Dept bans its software
The Moscow-based company - whose CEO Eugene Kaspersky is Russian - said in a statement that the Commerce Department's decision would not affect its ability to sell and promote its cyber security products and training in the U.S. Kaspersky said the government had based its decision on the "geopolitical climate and theoretical concerns" rather than independently verifying if there was a risk.
Biden bans US sales of Kaspersky software over Russia ties
The United States on Thursday banned Russia-based cybersecurity firm Kaspersky from providing its popular anti-virus products in the country, the US Commerce Department announced. "Kaspersky will generally no longer be able to, among other activities, sell its software within the United States or provide updates to software already in use," the Commerce Department said in a statement announcing the action, which it said is the first of its kind. da/des
Data storage cos in a sweat over need to stay cool
Data centers in western and northern India are facing rising operational costs due to soaring temperatures. Firms like Yotta and CtrlS are using alternative cooling methods and renewable energy, while ESDS reports a 10-12% rise in power costs due to erratic grid supply. Several of these data centres are located in New Delhi, Haryana, Noida.
SAP to acquire Israel-based WalkMe
Both companies' boards have approved the transaction for $14 per share, a premium of 45% on WalkMe's last closing price, they said in a joint statement.
Bosch leases 691k sq ft office space in Bengaluru for expansion
Bosch Global Software Technologies has leased 691,320 square feet of space in Bengaluru, India, to expand its operations. The property, located at Life Science Park in Electronic City, will seat around 8,000 employees and house the KPO operation under Robert Bosch. The lease is set to go live by the end of 2024. Bosch is a key partner in the global automotive industry and has the largest development centre outside Germany for end-to-end engineering and technology solutions.
Salesforce plummets 18% as weak forecast sparks concerns of AI competition
Salesforce shares slumped about 18% on Thursday, after its lowest-ever quarterly revenue growth forecast raised fears that high interest rates and rival AI offerings were hampering demand at the cloud-based software firm.
NIIT Q4 Results: Firm reports profit of Rs 11.16 crore vs YoY loss
Skill and talent development company NIIT on Friday reported a consolidated net profit (attributable to owners of the parent company) of Rs 11.16 crore for the quarter ended March 31, 2024. The company had posted a loss of Rs 9.36 crore in the year-ago period, according to a regulatory filing.
AI-led tech craze leaves mega Indian software stocks in the dust
Unlike counterparts in the developed world and China, Indian software makers including leader Tata Consultancy Services have yet to make significant advances in generative AI. That combined with a still cloudy outlook for client spending may soon leave them looking like the tech bets of yesterday.
IT midcaps weather market storm to enter billion-dollar club
Many other mid-cap IT firms are also eyeing an entry into the billion-dollar club in the coming quarters while the above-mentioned four are chasing the next target of $2 billion, industry observers said. Firms such as Happiest Minds Technologies, Cyient, ITC Infotech and Birlasoft announced their billion-dollar revenue target recently.
India Ahoy! India as a software IPO destination
While the likes of FirstCry and CureFit will continue to go public in India, it’s software firms with global customer bases that are now set to take centerstage.
SoftBank back at deal counter with Icertis deal talks
Tech VC in funding talks with portfolio co Icertis, which is stitching up a $150m secondary round
Inflation-wary Fed may put IT revival on hold
Indian outsourcing leaders face delayed business revival until FY26 due to US Federal Reserve's high interest rates. The impact on revenue growth and IT firms' strategies could persist, affecting deals and revenue projections in the sector.
Data collaboration software firm Atlan raises $105 million; valuation nearly doubles to $750 million
Funding led by Singapore's GIC and US-based Meritech Capital values startup at $750 million, up from $450 million in March 2022 when it last raised funds
Samsung Medison buys AI software firm Sonio SAS for $92 million
Samsung Electronics owns 68.45% stake in Samsung Medison, a medical device company specialising in diagnostic imaging devices.
Cybersecurity firm Darktrace accepts $5 billion takeover
Cybersecurity firm Darktrace said Friday it had accepted a $5.3-billion takeover bid from US private equity firm Thoma Bravo, which highlighted the British group's "capability in artificial intelligence". "Darktrace is at the very cutting edge of cybersecurity technology, and we have long been admirers of its platform and capability in artificial intelligence," Thoma Bravo partner Andrew Almeida said in a statement.
Microsoft-backed Rubrik aims to raise as much as $713 million in IPO
Palo Alto, California-based Rubrik is planning to sell 23 million shares priced between $28 and $31 per share, the source said on condition of anonymity because the discussions are confidential.
Global PE investors eye bigger pie of India’s software services sector
The number of PE firms holding majority stake in Indian IT services companies had doubled between 2019 and 2022 to more than 50, as per Avendus Capital data.
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