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  • Telefonica to Cut 6,000 Jobs in 2025 Amid Restructuring Plans

    As the Spanish telecom juggernaut prepares for a comprehensive strategy overhaul in November, Telefónica is thinking of laying off up to 7,000 employees. Although the business has not yet finalised the details, a Reuters official and internal sources both say that staff reductions are being considered.

    On November 4, Executive Chair Marc Murtra is anticipated to present a new strategic direction. The majority of the proposed cuts are aimed at Spanish operations, including IT, broadband, and mobile services, and they may even make their way to Telefonica’s central offices for the first time.

    After the next negotiations with unions, any employment actions would begin. The company hopes to reach an agreement by December 31 so that associated expenses can be included in the financials for the next year.

    Layoffs Can Prove Profitable for Telefónica

    In the midst of continuous digital changes, telecom companies’ attempts to optimise operations have been constantly monitored by investors. Given that Telefónica’s net debt is currently close to €27 billion, implementing layoffs could increase profit margins and free up money for much-needed network upgrades or debt reduction.

    If the cuts appear credible, shares might respond favourably, but the true effect will rely on the final magnitude, voluntary adoption, and the rate at which the savings are converted into profits.

    The Spanish corporation and its subsidiaries, Telefonica Moviles (the company’s mobile and broadband subsidiary in Spain) and Telefonica Soluciones (which provides outsourced IT services), are expected to account for the majority of the impacted employees, up to 5,000, according to the media reports. Employees at the corporate centre, who were previously exempt from redundancy plans, could also be impacted.

    Troublesome Time for Europe’s Telecom Sector

    Due to stagnant revenue and growing infrastructure expenses, major telecom companies in Europe are reevaluating everything from strategy to workforce. The sector as a whole is moving towards leaner, more tech-driven companies, as seen by Telefonica’s possible layoffs and extensive restructuring.

    Such actions might set the tone for future employment cuts and investment strategies throughout the continent, as traditional revenue streams are under strain and competition is intensifying.

    Quick Shots

    •Telefónica plans to lay off up to 7,000 employees
    in 2025 amid a major strategic overhaul.

    •Executive Chair Marc Murtra to present new strategy
    on Nov 4; layoffs may start after union negotiations.

    •Majority of cuts expected in Spain, impacting IT,
    broadband, mobile services, and possibly corporate offices.

    •Layoffs aim to improve profit margins, reduce debt
    (€27B net debt), and free funds for network upgrades.

    •Potential positive market reaction depends on final
    cut size, voluntary adoption, and savings-to-profit conversion.

    •Subsidiaries Telefónica Moviles and Telefónica
    Soluciones expected to bear up to 5,000 layoffs.

     

  • Dhan Becomes Unicorn After $120 Million Funding Round

    Mumbai-based fintech firm Raise Financial Services, the parent company of stock trading platform Dhan, has officially entered the unicorn club following a Series B funding round of $120 million. The investment was led by Hornbill Capital and included participation from MUFG, BEENEXT, and notable investors such as Ramesh Damani, DSP Family Office, JM Financial Family Office, and Aashish Somaiyaa. The round values the company at approximately $1.2 billion.

    Steady Growth Amid Regulatory Changes

    Raise Financial Services, the parent company of Dhan, was founded in January 2021 by Pravin Jadhav, Alok Pandey, Jay Prakash Gupta, and Raunak Rathi. The company launched Dhan later that year, navigating significant regulatory changes in the Indian trading landscape. Last year, the Securities and Exchange Board of India (Sebi) tightened rules around futures and options trading, which impacted a significant portion of retail trading volumes.

    Despite these challenges, Dhan has maintained steady growth, attracting nearly one million active users and strengthening its market position. Pravin Jadhav, cofounder and CEO of Raise Financial Services, noted that the company opted for a smaller, strategic funding round instead of larger offers nearing $1 billion.

    Financial Performance and Future Plans

    Dhan’s revenue for the financial year ending March 2025 is expected to reach around INR 900 crore, up from INR 380 crore the previous year. The company also swung to a net profit of INR 155 crore, compared with a loss of INR 22 crore in FY23.

    Looking ahead, Dhan plans to expand its offerings through margin-trading funding and AI-powered tools under its Fuzz platform. The company is also developing terminals for active traders and a separate platform for long-term investors, aiming to cater to a broader user base while remaining compliant with evolving regulations.

    Position in the Market

    Dhan currently has close to one million active users. While trading activity has softened following Sebi’s new rules, the platform continues to see strong engagement. Competitors like Groww and Zerodha are also adjusting to these regulatory changes, indicating a broader industry shift toward long-term investing and advisory services.

    The fresh capital will support Dhan’s growth across distribution, technology, and AI capabilities. An IPO is considered a potential step in the next four to five years, as the company continues to scale its operations.

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  • Flipkart Sells Stake in Aditya Birla Lifestyle Brands in INR 950 Cr Block Deal

    Through a block sale valued at INR 950 Cr (about $114 million), Flipkart Investments, the investment vehicle of the e-commerce powerhouse Flipkart, is reportedly diluting its whole 6% stake in Aditya Birla Lifestyle Brands Ltd (ABLBL).

    Flipkart plans to sell 7.3 Cr shares at a base price of INR 130 per, according to a CNBC Awaaz report. Notably, in 2020, Flipkart Investments invested INR 1,500 Cr to purchase a 7.8% stake in Aditya Birla Fashion and Retail Ltd (ABFRL).

    How ABLBL was Created?

    ABLBL was created following the vertical demerger of western clothing brands from ABFRL into a newly formed company inside Madura Fashion and Lifestyle. ABLBL’s portfolio includes lifestyle brands such as Simon Carter, Van Heusen, Allen Solly, Peter England, and Louis Philippe.

    It also includes American Eagle, Van Heusen’s innerwear division, and Reebok’s sportswear division in its portfolio. To support its digital house of brands initiative, TMRW, ABFRL is raising INR 437 Cr in its first external fundraising round.

    When TMRW was introduced in 2022, ABFRL stated that it will either acquire or incubate 30 fashion and lifestyle companies by 2025 in its portfolio. D2C startups Bewakoof, The Indian Garage Co., Wrogn, Urbano, and Nobero are currently part of TMRW’s portfolio.

    Flipkart Aiming for an IPO

    The equity sale for Flipkart coincides with the e-commerce behemoth’s preparations for its initial public offering. The company is already relocating its headquarters from Singapore to India as part of this, and it anticipates finishing the reverse flip in a few months.

    In terms of finances, Flipkart Internet, its B2C division, surpassed the INR 20,000 Cr revenue milestone in FY25. From INR 17,907 Cr in FY24 to INR 20,493 Cr in FY25, its operating revenue increased 14.4%. In the meantime, it was able to reduce its loss from INR 2,359 Cr in FY24 to INR 1,494 Cr in the year under review, a 37% reduction. Flipkart’s larger plan to reassess its investments in India’s retail industry includes this sale.

    In 2020, Flipkart first made an investment in ABFRL to bolster its omni-channel retail capabilities in the fashion and lifestyle sectors. Flipkart’s ownership is anticipated to fall below 3% following the transaction, indicating a significant reversal from its previous position.

    Quick Shots

    •Flipkart exits Aditya Birla Lifestyle Brands
    (ABLBL) via a INR 950 Cr block deal.

    •ABLBL was created via vertical demerger from Aditya
    Birla Fashion & Retail Ltd (ABFRL).

    •Flipkart prepping for IPO, moving HQ from Singapore
    to India, and planning reverse flip in coming months.

    •Flipkart FY25 revenue crossed INR 20,000 Cr, up
    14.4% YoY; losses reduced by 37% from FY24.

    •The sale is part of Flipkart’s strategy to reassess
    investments in India’s retail sector.

  • EcoEx Raises USD $4 Million to Power Clean Tech Expansion; Eyes USD $20M Scale & IPO Plans.

    EcoEx has secured USD $4 Million in a strategic funding round led by Dovetail Global Fund PCC, Navbharat Investment Fund, and Narnolia Velox Fund, with participation from domestic and international investors ahead of IPO preparation.

    The fresh capital will fuel technology enhancement, talent acquisition, expansion, and strengthening Clean Technology solutions as EcoEx scales its newly launched Waste Commodity App a first-of-its-kind mobile application enabling fully traceable and compliant digital trade of materials.

    “This funding marks a pivotal moment for EcoEx. With the support of global and domestic investors, we are accelerating our mission to build traceable, accountable, and profitable solutions for industries,” said Nimit Aggarwal, Founder & Director, EcoEx. “We are on track to cross USD 20 Million in transaction value in FY 25–26, transforming Waste into both a climate and economic opportunity.” he added.

    Since its inception, EcoEx has enabled PIBOs to secure over 1 Million Metric Tonnes EPR credits through CPCB-certified recyclers. With the launch of its mobile app, EcoEx is poised to amplify its impact, introducing real-time tracking, secure digital payments, and e-auction capabilities to streamline digital commodity trade. The app is rapidly gaining momentum, with over 3,000 recyclers / collectors already on boarded across India.

    “This is more than funding, it’s validation of a movement,” said Akshaya Rath, CEO, EcoEx. “EcoEx is committed to harnessing technology for climate accountability, ESG-aligned compliance, and resource recovery across India’s Waste value chain.” he added.

    EcoEx has established itself as India’s market leader in Plastic Waste Credit services, pioneering traceable and tech-enabled compliance tools for Extended Producer Responsibility (EPR). Its platform integrates EPR credit exchange, compliance automation, and consultancy services, making it the preferred partner for industries seeking to meet sustainability and regulatory commitments.

  • OpenAI Tightens Control on Sora Videos: May Pay Copyright Holders

    OpenAI’s creation Sora (AI for creating videos) uses copyrighted characters like Pikachu, SpongeBob, etc. Sora, by far, has let its users create copyrighted videos, which include scenes belonging to movie studios and TV companies like Disney and Warner Bros. But not anymore, as they are subject to Copyright laws, and OpenAI can’t let anyone use them freely. Moreover, 2025 has witnessed several Copyright infringement lawsuits against tech giants, including OpenAI, Microsoft, and Anthropic, among others. So, what is OpenAI going to do about it? Will these companies and original creators take action against OpenAI? For all that, learn more. 

    What OpenAI Is Doing About It?

    These rising tensions between OpenAI and Hollywood have led the company to take measures. OpenAI is now adding new controls for content owners:

    • More granular control → Copyright holders can decide on specific controls, such as how the character appears or is portrayed in the videos.
    • Option to block → The creators and the studios will also have the option to block the character usage entirely.

    The Business Side (Monetisation)

    • The company will soon start a revenue share model with copyright owners.
    • This model applies to the creators who allow their characters or content to be used in Sora videos.
    • Nothing is set in stone at the moment, but plans are underway.

    Sam Altman Said…

    Sam Altman, in a blog post, mentioned that OpenAI has spent a lot of time learning by taking feedback from its users and rightsholders. And so they decided to monetise the process to benefit both parties.

    He stressed that the team is still figuring out exactly how the system will work, but says that it will take some “trial and error.”

    He further added that the team will test different models soon and begin with Sora first, and proceed with other AI products.

    Why This Matters?

    • Hollywood is catching the AI flames. AI actors, AI in writing, and the open use of original content are worrying creators. Now the studios want to ensure that these creations are not misused (without consent and without reasonable payment).
    • Following the recent developments with Sora, Disney has already opted out, and many others might do the same.
    • If this happens on a larger scale, the creative side ability of the AI will be much limited. However, OpenAI is committed to finding a middle ground to keep the characters and to compensate them for doing so. 

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  • Affluense AI Raises ₹3 Crore Pre-Seed Round Led by Zeropearl VC; CRED’s Kunal Shah and Dhan’s Pravin Jadhav also back the venture

    Affluense AI, the intelligence platform redefining how businesses connect with affluent customers, has raised ₹3 crore in its pre-seed funding round led by Zeropearl VC, with participation from Kunal Shah, Founder and CEO of CRED, Pravin Jadhav, Founder and CEO of Dhan, and a group of early customers who strongly believe in the venture.

    The funds will be invested across four strategic areas, including product development to sharpen AI capabilities and expand data integrations, market expansion to accelerate customer acquisition and build sales teams, technology infrastructure to scale cloud systems and strengthen security, and talent acquisition to bring in leading AI engineers and data scientists.

    Founded by Sumit Sahu and Rishi Kumar, veterans with more than three decades of combined experience in building data-driven technology platforms, Affluense AI was born out of a frustration they repeatedly encountered in their work with prospecting teams. Professionals serving high-net-worth individuals were spending almost 80 percent of their time wrestling with fragmented and poor-quality data, rather than building meaningful relationships. The co-founders realized that engaging with a prospect should feel as natural as talking to a close friend, and that insight became the spark for creating a platform that could transform traditional prospecting into a competitive advantage.

    Affluense AI has already partnered with several of India’s premier wealth management firms, where users are reporting significant improvements in the rate of affluent client acquisition. By automating research-heavy workflows and transforming fragmented information into actionable insights, the platform allows professionals to reclaim valuable time and focus on cultivating trusted relationships. Its suite of solutions brings together Deep Research Enrichment for 360-degree prospect profiling, Connect AI for identifying affluent individuals across professions, Trending Deals for real-time opportunity tracking across more than 150 news sources, and AI-powered Network Graphs to map warm referral pathways. With this combination, Affluense AI is positioning itself to become the definitive platform for wealth managers, luxury brands, real estate companies, and automotive firms that seek to engage with the world’s most affluent customers.

    Sumit Sahu, Co-founder of Affluense AI, said, “This investment validates our vision and we are fortunate to have the trust of Kunal Shah, Pravin Jadhav and Zeropearl VC. Their confidence reinforces our mission to revolutionize firm engagement with affluent individuals and build the definitive platform that transforms prospecting into a genuine advantage across wealth management, luxury, real estate and automotive sectors.”

    Industry investors echoed this sentiment, highlighting how fragmented and poor-quality data has long been a barrier for firms targeting affluent clients. With Affluense AI’s ability to turn manual, time-intensive research into actionable discovery, they believe the platform is positioned to address one of the most persistent inefficiencies in the industry.

    Bipin Shah, Managing Partner at Zeropearl VC, said, “Affluense is solving a mission-critical challenge in how firms’ approach & acquire affluent clients better across sectors. Their AI-first platform provides clarity and precision in a space long plagued by inefficiency. We are excited to partner as they bring intelligence and scalability to this market.”

    The enthusiasm was shared by early angel investors who see the potential for Affluense to expand beyond wealth management and bring its intelligence-driven model to luxury goods, real estate, and automotive sectors. They believe the venture’s multi-industry approach positions it to capture a much larger opportunity and build a category-defining presence in affluent customer intelligence.

    With strong backing from leading investors and early adopters, Affluense AI is now focused on accelerating its product roadmap and expanding into new markets. The venture’s ambition is to establish itself as the global category leader in affluent customer intelligence, setting a new benchmark for how wealth managers, luxury brands, real estate firms and automotive companies discover, understand and engage the world’s most affluent customers.

  • The Rise of SaaS Cars: Why the Auto Industry’s Next Revolution Isn’t Electric, It’s Software

    In a recent viral LinkedIn post, Arjun Vaidya, co-founder of V3 Ventures and former founder of Dr. Vaidya’s, highlighted a growing trend in the automotive industry: the software-as-a-service (SaaS) approach to car features.

    Vaidya shared how he came across a YouTube review of the new Mercedes electric sedan. “Halfway through, the reviewer mentioned something that made the founder in me sit up,” he wrote. Drivers could pay an annual fee of around $1,200 to activate the car’s full acceleration. Without the subscription, the vehicle’s performance would revert to a slower mode.

    “This is not just a car subscription; it’s about subscribing to features already inside the car,” he explained.

    From Ownership to Access

    As highlighted by Vaidya, for years, people have misunderstood what “SaaS for Auto” means. It’s not about subscribing to a car instead of buying one; it’s about subscribing to the features already built inside your car.

    The hardware, the battery, the chip, and the motor are already there. But the company controls which features are accessible, and for how long.

    Vaidya notes that this shift is already happening across the world:

    • BMW experimented with monthly subscriptions for heated seats and adaptive cruise control.
    • Tesla pioneered software-based upgrades, charging monthly for its “Full Self-Driving” capability.
    • Audi lets users upgrade headlights or driving modes through paid software updates.
    • General Motors (GM) expects to make $25 billion annually from software services by 2030, more than the total annual revenue of Mahindra & Mahindra.

    For automakers, this represents a great strategic advantage.

    The Business Model Behind SaaS Cars

    The shift to a subscription-based model in autos mirrors what happened in software two decades ago. Microsoft went from selling boxed CDs of Office to recurring Office 365 subscriptions, and multiplied its lifetime revenue per customer.

    Car companies are following a similar path.

    1. Zero Marginal Cost

    The hardware is already installed. Activating a feature through software costs almost nothing.

    2. Recurring Revenue

    Instead of earning once per sale, manufacturers can now generate steady, high-margin income over time.

    3. Lower Upfront Cost

    Subscription-based features let brands sell cheaper base models, then earn from incremental upgrades.

    In short, they’ve found a way to make cars behave like apps.

    Software Becoming the Most Valuable Part of a Car

    The shift marks a broader trend where software, rather than the engine, is becoming the car’s most valuable asset. Vaidya posed a question to his readers: “Would you pay more for a feature? Or is a car a car once you buy it?”

    He also noted that while such models have been embraced in the West, Indian users may find them frustrating. “This is new behaviour from the West that has been exported here. I think it’ll annoy Indian users. You? Debate me,” he wrote.

    As automakers increasingly explore software monetisation, the concept of paying for car features rather than the vehicle itself could reshape both consumer expectations and the automotive business model in India.



    Final Thoughts

    The move to subscription-based features shows that software is becoming as important as the engine in cars. For manufacturers, it creates new ways to earn a steady income. For buyers, it changes the way we think about ownership, paying for features instead of the whole car. In India, this approach may take time to catch on, but as more vehicles become software-driven, paying for upgrades and new capabilities could become a normal part of owning a car.

  • White House Warns of Mass Layoffs as U.S. Government Shutdown Deepens

    The White House has issued a warning that if US President Donald Trump determines that talks with congressional Democrats to resolve a partial government shutdown have come to a standstill, mass layoffs of federal employees may start.

    White House National Economic Council Director Kevin Hassett told CNN’s State of the Union show on 5 September, as the shutdown reached its fifth day, that he thought there was still a chance Democrats would give up and prevent what may turn out to be an expensive political and economic catastrophe.

    “President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don’t,” Hassett added, referring to the White House budget director. Layoffs will begin if the president determines that the negotiations are completely failing.

    Trump Termed it as ‘Democratic Layoffs’

    “Anybody laid off, that’s because of the Democrats,” Trump told reporters on 5 September, referring to the possible layoffs as “Democrat layoffs”. Despite the ongoing government shutdown, Trump was present at a US Navy anniversary event in Norfolk, Virginia, on September 5. “I think the show has to go on!” Before leaving the White House for Naval Station Norfolk, Trump posted on Truth Social that it was “a show of Naval aptitude and strength.”

    However, Trump accused Democrats of inciting the shutdown and attempting “to destroy this wonderful celebration of the US Navy’s Birthday”, putting the occasion at risk of becoming embroiled in partisan hostilities. Since Trump’s last meeting with congressional leaders, no substantive talks have taken place. The standoff started on October 1, the first day of the federal fiscal year, when Senate Democrats rejected a short-term funding plan that would have kept government departments operating until November 21.

    Senate Democratic leader Chuck Schumer stated on the CBS show Face the Nation that only new negotiations between Trump and legislative leaders could break the impasse, saying, “They’ve refused to talk with us.” Democrats are calling for guarantees that the White House will not unilaterally reduce expenditure agreed upon in any agreement, as well as a permanent renewal of the enhanced premium tax credits under the Affordable Care Act (ACA).

    Till Now No Conclusive Decision Taken

    In an attempt to break the impasse, rank-and-file senators from both parties have had informal discussions on spending and healthcare, but little has changed. When asked if senators were closer to reaching an agreement, Democratic Senator Ruben Gallego responded to CNN, “At this point, no.” On 6 September, the Senate will vote once more on two duelling financing measures, one supported by the Democratic-led House and the other by Republicans.

    However, neither one is anticipated to receive the 60 votes needed to move forward. As long as the shutdown lasts, around 750,000 federal employees could be placed on furlough, with an estimated $400 million in lost wages every day, according to the Congressional Budget Office. The 2019 Government Employee Fair Treatment Act guarantees backpay to federal employees, but payments won’t start until the closure is finished.

    Quick Shots

    •Shutdown entered its fifth day
    after Senate Democrats rejected a short-term funding bill on Oct 1.

    •President Trump blames
    Democrats, calling potential furloughs “Democrat layoffs.”

    •White House officials say
    layoffs will begin if talks with Democrats completely break down.

    •No substantive negotiations
    have occurred since Trump’s last meeting with congressional leaders.

     

  • Finarkein Announces $1.5M Funding Round led by DSP

    Finarkein today announced the successful extension of its Pre-Series A funding round, securing $ 1.5M in primary and secondary investments. This round of funding was led by DSP Group Family Office with participation from existing investors. 

    The investment round saw fresh investment from marquee investors like DSP while select existing investors like Capital 2B doubled down, reflecting strong confidence in Finarkein’s vision and technology. The Indian fintech infrastructure story is gaining momentum and Finarkein continues to be an innovative leader in space attracting marquee clients and investors alike. 

    “Our platform continues to be a market leader in the Account Aggregator space, offering best in class experience combined with privacy preserving technologies, which is vital in the data space,” said Nikhil Kurhe, CEO of Finarkein. ” Patient capital allows us to further invest in data privacy, security and compliance as Finarkeinʼs data products further power Indiaʼs financial markets. DSP is a premier Asset Manager and has a track record of investing into and incubating Fintech businesses, and we are glad to have them onboard team Finarkein.”

    “Finarkein is building the foundation rails for ease of adoption of open banking and open finance. Their commitment to innovation and execution aligns perfectly with DSPʼs belief in long-term, high-impact growth. Weʼve seen how Finarkein can unlock immense value across the financial ecosystem, and weʼre excited to support their next stage of growth,ˮ said Aditi Kothari Desai, Chairperson, DSP.

    “Financial products are increasingly becoming data driven and the fintech infrastructure ecosystem continues to grow multifold. Finarkein has been a clear category creator Indiaʼs open finance story. We are excited to see Indian data infrastructure companies build from India for the world, and Finarkeinʼs platform continues to set the standard for the ecosystem,ˮ said Kunal Bajaj, who takes up a Board Observer position with Finarkein. 

    While a significant amount of the raise was deployed on secondaries, the company plans to allocate funds towards enhancing its Data & FinAI Platform, expanding the team, and exploring emerging data and AI opportunities within their existing customer base. This investment will also support Finarkein’s ongoing commitment to innovation, privacy and customer satisfaction. 

  • Morphing Machines Series A Funding Led by IAN Alpha Fund with participation from Speciale Invest, IvyCap Ventures, and Navam Capital

    Morphing Machines, a Bengaluru-based fabless semiconductor IP company at the Indian Institute of Science (IISc), has raised ₹38.36 crore in a Series A funding round led by IAN Alpha Fund, with participation from Speciale Invest, IvyCap Ventures, and Navam Capital. Existing investors from the Seed round include Speciale Invest, IvyCap Ventures, Navam Capital, Golden Sparrow Ventures, IIMA Ventures, and DeVC. 

    Morphing Machines is part of India’s growing Deeptech ecosystem, developing breakthrough technologies that push the boundaries of computing. The company is building a many core processor that can handle diverse workloads with speed and efficiency, addressing the needs of industries such as data centers and artificial intelligence. These are sectors where demand is growing rapidly and existing hardware is struggling to keep pace.

    After more than a decade of research, the company brings a combination of deep technical expertise and practical product focus. Unlike traditional approaches, the company is building semiconductor solutions that are not only powerful but also energy-efficient and scalable, making them relevant for high-performance computing, AI, and next-generation enterprise applications.

    The company was founded by Deepak Shapeti (Co-Founder & CEO), Dr. Ranjani Narayan (Founder & CTO), and Prof. S. K. Nandy (Founder & Chief Scientific Advisor). The idea originated from a deep research foundation backed by IISc (Indian Institute of Science). The vision formalized from the work done on developed processors for DRDO and Safran Aerospace. These projects laid the foundation for Morphing Machines’ breakthrough innovation of creating software-defined hardware that can adapt to fast-changing needs.

    Deepak Shapeti, Co-founder & CEO, Morphing Machines, said, “Data Centers today demand agility—REDEFINE uniquely adapts to any workload, from AI to analytics, delivering breakthrough efficiency and lower costs for the next era of cloud computing. Our Series A funding will accelerate deployment of REDEFINE into consumer cloud data centers,  hyperscalers, and other such use cases where we can offer customers better performance, efficiency, and flexibility while dramatically lowering total cost of ownership.”

    Rajnish Kapur, Managing Partner, IAN Alpha Fund, said, “We are delighted to partner with Morphing Machines, a deep-tech semiconductor startup built on nearly two decades of pioneering research at the Indian Institute of Science. Morphing Machines is developing REDEFINE™, a runtime reconfigurable manycore parallel compute processor that combines the flexibility of an FPGA with the performance of an ASIC. Like a Swiss knife, REDEFINE™ can dynamically switch between CPU and GPU capacity cores, making it ideal for the diverse, demanding and yet unpredictable workloads of modern applications that are increasingly AI-driven. The timing couldn’t be better: with the rising demands of high-performance computing, data centers, Generative AI, 6G, ADAS etc., the need for scalable AI acceleration is more urgent than ever. We are thrilled to work alongside Dr. Ranjani Narayan, Prof. S.K. Nandy, and Deepak Shapeti as they push the frontiers of India’s semiconductor mission.”

    Vishesh Rajaram, Managing Partner, Speciale Invest, said, “At Speciale Invest, we are committed to backing founders who are building at the very edge of science and engineering. Morphing Machines exemplifies this — bringing together more than a decade of IISc-led research and transforming it into a commercially scalable semiconductor innovation. REDEFINE™ is a breakthrough architecture that addresses the growing demand for compute agility in data centers and AI workloads globally. We are excited to partner with Deepak, Dr. Ranjani, and Prof. Nandy as they push forward India’s semiconductor mission and build a globally competitive deeptech company.”

    The new funding will be used to build and test its first chip, strengthen its product, and expand the team from 50 to more than 90 people. The company also plans to start demos with customers and secure early adoption in data centers. Over time, Morphing Machines will expand into global markets such as the US and Europe where Data center markets are already saturated and require for improved compute is paramount.

    In the next 12 to 24 months, the company will focus on building its first proof-of-silicon chip, signing paid pilot projects with data center customers, and improving its software toolchain. They aim to become a global leader in semiconductor accelerators while contributing to India’s growing semiconductor ecosystem.