Tech5: Cyient acquires stake in Azimuth AI, Indian IT's home market valued at $14.5 billion, and more

Forbes India's daily tech news bulletin with five headlines that caught our attention

By Harichandan Arakali Forbes India Staff

Published: Oct 29, 2024 11:37:52 AM IST

Updated: Oct 29, 2024 12:38:47 PM IST

Cyient has acquired a strategic stake in US-based Azimuth AI, a fabless semiconductor design startup Image: Courtesy Cyient

Cyient acquires strategic stake in Azimuth to bolster ASIC business

Cyient, an engineering services provider from Hyderabad, has acquired a strategic stake in US-based Azimuth AI, a fabless semiconductor design startup, the company said in a press release yesterday. Cyient has acquired 27.3 percent of Azimuth AI, which provides custom ASIC (application-specific integrated circuits) designs for applications in the power and energy sector. The company didn’t provide details of the value of the deal.

“Driven by the Indian government’s initiatives to boost domestic innovation in semiconductors, India is emerging as a hub for chip development,” Krishna Bodanapu, executive vice chairman and managing Director of Cyient, said in the press release. In July this year, the company outlined a plan to expand its semiconductor business with the establishment of a fully owned subsidiary.

Praveen Yasarapu, founder and CEO of Azimuth AI, said the partnership will help take Azimuth’s capabilities to a much larger customer base that Cyient has access to. Both companies benefit.

India’s IT services domestic market valued at $14.5 billion

India’s IT services domestic market grew 6.1 percent year-over-year (y-o-y) in 2023, reaching $14.5 billion in sales, according to an International Data Corporation report, ‘IDC Market Analysis Perspective: India IT Services Market, 2024’. While IT investments showed a slower recovery compared to the previous year, the report highlights that digital transformation initiatives and the increasing complexity of IT environments will continue to drive market growth.

"While 2023 saw a slowdown in IT investment, 2024 will be all about growth fuelled by digital transformation,” Neha Gupta, senior research manager, software and IT Services market, IDC India, said in an October 28 press release on the report. The increasing complexity of IT ecosystems—blending on-premises, private, and multi-cloud environments—along with surging demand for AI and GenAI solutions, stronger security measures, and automation, will drive the market forward, Gupta added.

India opens new agri-biotech complex to help labs-to-market progress

A new complex was opened on October 28 by India’s Science and Technology Minister Jitendra Singh, as part of the country’s first biomanufacturing institute, the BRIC-National Agri-Food Bio-Manufacturing Institute.

This institute, in Mohali, is aimed at enhancing India’s agri-food sector through advanced biotechnology, according to a government press release. Established through the strategic merger of NABI and CIAB, the institute is expected to bring together biotechnology and bioprocessing expertise to streamline the journey from research to commercialisation. It will facilitate pilot-scale production and deliver innovative agri-tech solutions to the market.

AI startup Sierra Tech’s valuation surges to $4.5 billion in new funding round

Sierra Technologies, an AI startup founded by OpenAI Chairman Bret Taylor and former Alphabet executive Clay Bavor, has raised $175 million, bringing its valuation to $4.5 billion, up from nearly $1 billion earlier this year, Bloomberg reported earlier today.

Taylor noted in an interview with CNBC the current funding environment appears “frothy,” but believes AI's potential justifies the investments, likening top companies to dot-com giants like Google, while also warning of prevalent "snake oil" in the sector. The funding round was led by Greenoaks Capital Partners, with participation from Thrive Capital, Iconiq Capital, and existing investors. Sierra develops AI customer service tools for brands such as ADT Inc and Casper Sleep Inc.

Indian AI infra provider Neysa raises $30 million in Series A funding

Neysa, an AI acceleration cloud system provider, has raised $30 million in Series A funding, the Mumbai startup said in a press release. The investment round was co-led by existing investors NTTVC, Z47 (formerly Matrix Partners India) and Nexus Venture Partners. This investment builds on Neysa’s $20 million seed round earlier this year, according to the press release.

The company launched its flagship platform, Neysa Velocis, in July 2024, which enables on-demand access to high-performance computing infrastructure, and that is now generally available. Neysa has secured orders from paying customers across various sectors, including AI-first digital natives, media and entertainment companies, service providers, software vendors, and the public sector.

The new funding will help Neysa build up its AI infrastructure, advance research and development, and gear up for the launch of its integrated Gen AI Acceleration Cloud Service, the company said.

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