Also in the letter:
■ Swish’s new funding
■ Ola surrenders office space
■ Desi vs incoming tech talent
Chandrasekaran to help drive TCS down AI lane
Tata Sons chairman N Chandrasekaran is assuming a more hands-on role at TCS to help guide India’s largest IT firm through a crucial period, as artificial intelligence impacts the industry.
The focus is on keeping TCS strong, protecting the group’s main source of cash, and preparing for future technology shifts.
What’s happening: Chandrasekaran is pushing TCS to become the go-to AI partner for all Tata group companies. The company is also looking at buying AI-focussed startups to speed up its transformation.
- Speaking to over 700 employees at an annual company event in Dubai, he emphasised the need for continuous upskilling to stay ahead in an AI-driven world.
TCS CEO K Krithivasan and COO Aarti Subramanian are seen as Chandrasekaran’s trusted deputies in this effort.
Why the move: The Tata group relies heavily on TCS dividends to fund its other businesses. Any loss of relevance could hurt the conglomerate, so Chandrasekaran wants to ensure that the company stays on track and continues to grow amid rapid shifts in technology and client demands.
AI research labs are moving quickly up the value chain, rolling out products such as Anthropic’s Claude Cowork that could emerge as direct competitors to legacy IT services firms and software vendors.
Yes, but: Global firms like Palantir and Goldman Sachs are already developing their own AI products, showing that simply relabelling IT services as AI solutions isn’t going to cut it. Companies need to invest in innovation, build new capabilities, and pivot to new operating models to truly stand out.
Also Read: Investments in AI, cloud set to drive IT spending in 2026
Fractal Analytics IPO day 1: Issue sees muted response at 9% subscription
The Rs 2,834-crore initial public offering (IPO) of Fractal Analytics, India’s first pure-play artificial intelligence (AI) company, opened for subscription today. Its issue witnessed a slow start, receiving bids for only 9% of the 1.85 crore shares on offer on Day 1.
Subscription details:
- Retail individual investors placed bids for 35% of the 32.36 lakh shares allocated to them.
- Non-institutional investors subscribed 7% of their 48.55 lakh allocation.
- Qualified institutional buyers submitted only 224 bids for the 97.10 lakh shares reserved for them.
- In the grey market, shares are trading at a modest premium of around 1.1% to 1.5% (Rs 10-13).
Issue details: The issue comprised a fresh issue of Rs 1,023 crore and an offer for sale of Rs 1,810 crore by existing shareholders. The price band is set at Rs 857-900 per share.
The IPO comes amid strong global interest in AI-driven business models, even as valuations in the technology sector face close scrutiny. The company priced its IPO at about a 26% discount to its last private-market valuation.
CEO’s take: Cofounder and group CEO Srikanth Velamakanni had told us that public market investors assess AI firms through a very different lens than specialised private funds with deeper sector knowledge.
Also Read: Fractal Analytics raises Rs 1,248 crore from anchor investors ahead of IPO
Food delivery startup Swish in talks to raise $30-35 million from Bain Capital Ventures, Accel: sources
Two-year-old startup Swish is discussing a $30-35 million fundraise from Bain Capital Ventures along with existing investors including Accel, sources told us.
Details:
- Swish’s latest round will value the startup around $100-120 million.
- This is almost double the $60 million at which it last raised capital.
- The potential investors are currently conducting due diligence of the company’s operating and financial metrics.
- Cofounders Aniket Shah, Ujjwal Sukheja, and Saran S together hold about 49% stake in Swish, while Accel is the largest external shareholder with 27.2% stake.
About Swish: The startup competes with the likes of Blinkit’s Bistro, Swiggy’s Bolt and Snacc, and Zepto Cafe. Founded in 2024, it aims to deliver meals in about 10 minutes by preparing the food at company-run cloud kitchens located close to customers, typically within a 1.5-2 km radius.
Sector watch: This is akin to the dark-store formula of quick commerce, where fulfilment centres close to demand clusters enable fast delivery. The segment has attracted significant investor interest in India over the past few years. However, it has also seen downturns. In July 2025, ET reported that Zepto Cafe scaled down operations, and last May Zomato shut its Quick and Everyday services.
Ola trims realty footprint to recalibrate ops, cut costs
Ride-hailing and EV major Ola has surrendered nearly 170,000 square feet of office space in Bengaluru as it looks to cut costs and recalibrate operations amid slowing demand for electric two-wheelers.
Consolidation plan:
- Ola Electric has given up the entire seventh and eighth floors in tower B of Prestige-RMZ Startech in Koramangala, totalling over 112,000 square feet.
- Global consulting and technology firm Accenture has taken these over, sources said.
- At Infozone in Electronic City, where Ola runs its Battery Innovation Centre, last year the company surrendered nearly 60,000 of the 200,000 square feet it occupied.
Insider’s take: “Ola’s surrender is largely part of internal consolidation rather than a market-driven exit. Demand for premium office space in Bengaluru remains strong, especially from GCCs and consulting firms,” the sources added.
A company spokesperson said this “workspace optimisation” was linked to broader business restructuring.
Prime presence: Despite this, the Bhavish Aggarwal-led company retains a strong presence in the city. It occupies approximately 427,000 square feet at Prestige Startech, which serves as its corporate office and the hub of Ola Electric’s operations. The lease for this was renewed last year for a five-year term ending in October 2030.
Homegrown startups outperform returnee tech talent, study shows
A new study by UC Berkeley professor AnnaLee Saxenian and tech entrepreneur Vivek Wadhwa shows that homegrown Indian entrepreneurs are outperforming returning diaspora in building lasting businesses, challenging the long-held belief in favour of overseas experience as reported by Bloomberg on Monday.
The ‘returnee paradox’: The researchers analysed 596 high-tech startups established between 2016 and 2023 in India, noting a “returnee paradox.” Incoming professionals seem to add value in specialised roles, but domestic founders are leading on commercial outcomes, including valuation, revenue, and longevity.
Saxenian, renowned for her research on why Silicon Valley succeeded, said that unlike a decade ago, “ground knowledge” and the ability to swiftly adapt to local market needs have become bigger assets than western exposure.
Early money: According to the study, returnees find it easier to raise seed and early-stage capital due to their strong networks, but this initial advantage dissipates over time. Wadhwa said the findings were the “exact opposite” of expectations.
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