Happy Monday! Lightspeed’s top brass has laid out the firm’s AI thesis for India. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ ePlane in talks to raise funds
■ Livspace lays off 1,000
■ New semicon projects in India
Lightspeed bets big on AI, India’s real edge is in applied innovation: Ravi Mhatre & Bejul Somaia
Silicon Valley-headquartered venture capital firm Lightspeed is doubling down on artificial intelligence (AI) with global bets including Anthropic, Mistral AI (France) and Sarvam (India).
Armed with its $9 billion fund closed in December—its largest in its 25-year history across six global vehicles— the firm plans to expand its AI exposure in India, partners Ravi Mhatre and Bejul Somaia told us.
While the India-dedicated fund is yet to be disclosed, the partners said nearly 60% of the firm’s India investments over the past year were in AI-native startups.
Also Read: ETtech Interview: Lightspeed’s Ravi Mhatre & Bejul Somaia on the AI bubble, India opportunity & more
Application layer for India: Lightspeed sees the strongest opportunity in the application layer. Somaia said India’s advantage lies in tailoring AI to its linguistic diversity, regulatory diversity, and sector-specific complexity.
“You can look at the model layer or the infrastructure layer, but India’s real advantage is in building and deploying applications at real-world scale,” Mhatre said, citing use cases in financial services, healthcare and education.
Consumer opportunity: The firm sees potential in quick commerce, but intends to avoid direct consumer brands.
“We’re interested in businesses with real non-linearity in outcomes. More predictable models may deliver three to five times capital, but the upside is capped. Our focus is on asymmetric potential,” Somaia said.
AI play: Globally, Lightspeed has backed more than 165 AI-native startups in recent years, deploying $5.5 billion, largely at early stages. In India, its portfolio includes vibe-coding startup Emergent and Composio.
Also Read: Major VCs line up top dollars for coordinated AI capital push in India
ETtech in-depth: Monetisation wrestles with moderation in livestream grey zones
Hundreds of women, many from tier-II and tier-III cities, are joining livestreaming and chat platforms drawn by low entry barriers, flexible hours and steady earning potential. Apps that scaled after Omegle’s shutdown are gaining traction in smaller towns, often operating with lighter moderation. Similar formats are now spilling onto mainstream social platforms.
How does it work?
- Payments are often routed through QR codes linked directly to creators’ UPI accounts.
- Users buy virtual gifts that convert to in-app coins., which creators later redeem for cash..
- Many creators tailor content carefully to stay within platform rules while monetising suggestive engagement.
Regulation loophole:
- Digital rights groups say the gap between explicit violations and implied content creates enforcement grey zones.
- Age verification remains patchy. While platforms offer age-based filters and safety settings, enforcement is weak, especially on smaller apps with limited moderation capacity.
Air taxi startup ePlane eyes $40-50 million round, Speciale Invest co-leads
Electric aircraft startup The ePlane Company is in talks to raise around $40-50 million in funding, sources told us.
Deal details:
- The round will combine equity, convertible instruments and proposed government-backed research, development and innovation (RDI) support.
- The Chennai-based startup has secured board approval for a $15-20 million convertible tranche, which it aims to close next month.
- A larger growth capital infusion will follow, with the final size linked to its application under the Rs 1 lakh crore RDI Fund.
- Deeptech investor Speciale Invest is in discussions to co-lead the private round. Managing partner Vishesh Rajaram confirmed the same to us.
Tell me more: Incubated in IIT Madras, ePlane is developing separate variants of its e200x electric air taxi for ground and flight testing. Led by IIT Madras professor Satya Chakravarthy, the company is planning a phased rollout, starting with air ambulance and cargo operations before moving into passenger services.
Livspace lays off 1,000 employees, cofounder Saurabh Jain exits
Home decor unicorn Livspace has cut about 1,000 jobs or roughly 12% of its total staff over the past six months as part of a restructuring exercise.
The Bengaluru-based startup attributed the layoffs to a “structural reset” linked to deeper adoption of AI and automation across core functions.
Leadership change: The overhaul coincides with leadership changes. Cofounder Saurabh Jain has left after 11 years at the company. Earlier, cofounder Anuj Srivastava transitioned to chairman, with Ramakant Sharma taking over as CEO.
Other Top Stories By Our Reporters
Four semicon units to begin production soon: Speaking virtually at the groundbreaking ceremony of the new outsourced semiconductor assembly and test (OSAT) facility of HCL Group and Taiwan’s Hon Hai Precision Industry Co (Foxconn) at Jewar in Uttar Pradesh, PM Narendra Modi said India is striving to join the leading nations in providing processing power to the world.
Delhi declaration urges democratic AI for social good: The India AI Impact Summit concluded on Saturday with more than 80 countries signing the Delhi Declaration, pledging to balance advances in artificial intelligence with a commitment to equitable growth and ethical standards.
AMD VP on AI strategy: American semiconductor company Advanced Micro Devices (AMD) is positioning India at the heart of its global artificial intelligence strategy, with a new high-performance AI infrastructure platform and expanded partnerships, a senior executive said.
‘Cybersecurity a core national priority’: Cybersecurity today is not just a technical problem, it is a core national priority that touches economic growth, public trust and digital safety as both the threat landscape and digital adoption evolve rapidly, a top Palo Alto Networks executive said.
Global Picks We Are Reading
■ Metadata exposes authors of ICE’s ‘mega’ detention center plans (Wired)
■ Can social media age verification really protect kids? (Rest of World)
■ AI’s ‘memorisation’ problem: the novels it can’t forget (FT)
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