Tech5: Swiggy preps for Rs 3,750 crore IPO; Freshworks hits new lows; Tokyo Electron's India plans and more

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

By Harichandan Arakali Forbes India Staff

Published: Sep 27, 2024 11:09:43 AM IST

Updated: Sep 27, 2024 11:21:10 AM IST

Swiggy is seeking to raise Rs 3,750 crore ($448 million) in an initial public offer of shares, according to the prospectus Image: Sudipta Das/NurPhoto via Getty Images

Swiggy prepares to go public, files prospectus with regulator

Swiggy, widely seen as India’s second biggest food delivery platform, is seeking to raise Rs 3,750 crore ($448 million) in an initial public offer of shares, according to the prospectus the Bengaluru company has filed with the capital markets regulator Securities Exchange Board of India.

Swiggy’s venture capital investors, including South Africa’s Naspers and Norwest Venture Partners, plan to sell up to 1,853 lakh shares, with Naspers offering 1,182 lakh shares. Founded in 2014, Swiggy works with over 150,000 restaurants across India and competes with Zomato, Amazon's India unit, and Tata Group's BigBasket.

The funds from the IPO will be used to invest in its Scootsy unit, expand its quick commerce business, and enhance technology and cloud infrastructure, the company says. The share sale is being managed by Kotak Mahindra Capital, Citigroup, Jefferies India, and Avendus Capital.

Freshworks shares hit new lows amid tough market conditions

Shares of Freshworks have hit their lowest levels since the company went public three years ago, amid tough market conditions, despite strong Q2 results. Freshworks shares ended at $11.04 on the Nasdaq yesterday, after going as low as $10.89 in intra-day trading, as investors move to bigger-cap names.

That’s the lowest since the Chennai-to-Silicon Valley company’s listing on the Nasdaq in September 2021. This year alone Freshworks has lost 50 percent of its market value. Shares have fallen 76 percent since listing.

Enterprise customers are seeking to consolidate their software purchases to reduce costs as well as keep the number of software subscriptions within manageable limits. Freshworks, which offers IT management and customer experience management software, is seeking to break into segments where it will have to compete with much larger rivals.

Tokyo Electron to set up team of semiconductor engineers in India

Tokyo Electron, Japan’s biggest chip-making machines manufacturer, will set up a team of engineers in India, whose first task will be to assist Tata Electronics, Bloomberg reported earlier today.

Tata Electronics is currently setting up a semiconductor 50,000 wafer fab in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation.

Tokyo Electron plans to hire and train local engineers in 2026, CEO Toshiki Kawai told Bloomberg, which is around the time the fab will be ready. Robotics will play a growing role and local staff will be provided with in-person and remote support from Japan, he added, declining to say how many people the company would hire.

The Japanese company supplies its equipment to the world’s biggest chip makers, including Taiwan Semiconductor Manufacturing Co., Samsung Electronics, SK Hynix and Intel. It expects overall chip demand to double by 2030, led by rising demand for chips for AI development and applications, autonomous vehicles, and the world’s transition to renewable energy, according to Bloomberg.

Accenture says Gen AI contributed to $3 billion in bookings after Q4

Accenture reported strong financial results for its fiscal year ended August 31, with new bookings totalling $81.2 billion, marking a 13 percent increase year-over-year. Generative AI contributed significantly, generating $3 billion in new bookings for the full year, the company said in a press release yesterday.

CEO Julie Sweet said in the release that she sees generative AI as “the most transformative technology of the next decade”.

Fourth-quarter revenues reached $16.4 billion, reflecting a 3 percent increase in US dollars, with GAAP operating margins rising to 14.3 percent. Accenture’s free cash flow was $3.2 billion for the quarter. Looking ahead, the company forecasts revenue growth of 3 percent to 6 percent for fiscal 2025.

Meta announces Orion AR glasses with significant tech advances

Five years after announcing his vision for AR glasses, Mark Zuckerberg’s Meta Platforms has unveiled Orion, which the company says is the most advanced augmented reality glasses yet. Orion aims to merge the physical and virtual realms, enhancing user presence and connectivity, the company said in its announcement on September 25.

Top features include expansive holographic displays that surpass smartphone limitations, contextual AI that anticipates user needs, and a lightweight design suitable for everyday wear.

Building on the success of the company’s Ray-Ban Meta glasses, which provided hands-free access to some digital experiences, Orion aspires to deliver a comfortable, all-day wearable with both large displays and personalised AI support. The development involved significant miniaturisation and innovation, achieving a compact form factor with a large field of view.

This breakthrough enables immersive experiences ranging from multitasking windows to life-size holograms, integrating digital content with the physical environment.

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