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  • Daily Indian Funding Roundup – June 2, 2025

    India’s startup ecosystem continues to show resilience and growth as several startups raised significant funding on 2 June 2025. From fintech to fashion, here’s a quick roundup of the major funding developments:

    Udaan Raises $114 Million at $1.8 Billion Valuation

    B2B e-commerce giant Udaan has secured $114 million in a flat round, maintaining its $1.8 billion valuation. This funding will help Udaan strengthen its supply chain infrastructure and focus on core business operations. The round reflects investor confidence in Udaan’s long-term business model despite a highly competitive sector.

    Snitch Raises $40 Million in Series B Round

    Direct-to-consumer (D2C) fashion brand Snitch secured $40 million in its Series B round, signalling strong investor interest in the fashion-tech space. The funding will accelerate product development, tech integration, and omnichannel expansion, allowing Snitch to capture more of the urban menswear market.

    Spense Raises $1.85 Million in Series B Round

    Bengaluru-based fintech startup Spense raised $1.85 million in its Series B funding round. The fresh capital is expected to fuel product innovation, technology development, and market expansion. With financial inclusion as a central goal, Spense is well-positioned to scale its offerings across Tier 2 and Tier 3 cities.

    Pepperfry Secures INR 43.3 Crore to Boost Growth

    Online furniture marketplace Pepperfry has reportedly raised INR 43.3 crore to accelerate growth and expand its offline studio footprint. This investment aims to strengthen its omnichannel strategy and deepen its presence in key urban and semi-urban markets.

    Samunnati Raises INR 50 Crore for Agri-Financing Expansion

    Agri-financing company, Samunnati, secured INR 50 crore to enhance its credit solutions for farmer collectives and agri-enterprises. The funding will be used to strengthen its digital platform and support sustainable agriculture models.

    Indian startups are gaining momentum across verticals. Stay tuned to StartupTalky for more daily updates on startup funding, industry movements, and emerging trends.

    If your company has raised funds recently, reach out to us at story@startuptalky.com to get featured.

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  • Samunnati Raises INR 50 Crore NCD Through Wintwealth Platform for Agri Push

    In a major step toward enhancing capital access for the smallholder farmers, Samunnati, India’s leading agri-value chain enabler, has successfully concluded its latest INR 50 crore NCD (Non-Convertible Debenture) tranche through the digital bond platform Wintwealth. This is an important milestone, as the total fund raised via the Wintwealth platform has now reached to impressive INR 160 crore. 

    This proactive approach to fundraising and strategic partnerships underscores its commitment to financial innovation and rural development. This milestone has not only fortified Samunnati’s capital base but also paved the way for retail investors to directly participate in the growth of Indian agriculture, making them key contributors to a more inclusive and resilient rural economy. 

    “Our journey with Wintwealth has not just been about raising capital—it’s about building trust, access, and opportunity,” said Anil Kumar SG, Founder & CEO, Samunnati. He added, “We deeply value our partnership with the Wintwealth team, whose innovative platform has opened up new avenues for channeling capital to where it is most needed. As we gear up for the next phase with a planned ₹300 Cr raise, we remain committed to creating impact at scale across the agri value chain.”

    Samunnati’s mission to make markets work for smallholder farmers finds deeper resonance in its ability to bring mainstream retail capital to agri-finance, enabling scale and sustainability across the ecosystem. 

    “SEBI’s reforms have made the bond market accessible to retail investors, and they can now invest in listed bonds at ticket sizes as low as ₹10,000. It’s heartening to see the overwhelming response that Samunnati’s listed bonds have received. This capital infusion is enabling much-needed financial momentum in India’s agriculture sector—something Samunnati is proud to lead,” said Anshul Gupta, Co-founder, Wintwealth.

    Samunnati has consistently worked to bridge the gap between smallholder farmers and formal financial systems by creating innovative, scalable models that blend finance, technology, and market linkages. From enabling access to working capital for FPOs to building inclusive supply chains, Samunnati has positioned agriculture not just as a livelihood sector, but as an investable opportunity for institutions and individuals alike. 

    Earlier, Samunnati made headlines by registering its Green Bond on the BSE, a pioneering move for the agri sector. As India’s agriculture continues to evolve with technology and innovation, Samunnati remains committed to catalysing systemic change through blended finance and strategic partnerships.

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  • Tesla Not Keen on Manufacturing in India, Says Union Minister Kumaraswamy

    According to a media agency, Heavy Industries Minister H D Kumaraswamy stated on 2 June that Tesla has no plans to produce electric cars in India anytime soon. Although local production is not currently in Tesla’s plans, the company is getting ready for a market debut.

    According to reports, Tesla is not currently exploring local manufacturing, even though it has finalised a showroom space in Mumbai’s Bandra Kurla Complex and hired more than two dozen employees in India, including store managers and service professionals.

    The company is anticipated to launch its first vehicle in the market within the next two to three months after starting the certification and homologation procedure to sell its EVs in India.

    India Carving Attractive EV Policy to Allure International Players

    In an effort to draw in big companies like Tesla, India launched a flagship EV policy in March 2024 that offered lower import taxes in return for manufacturing commitments.

    Companies that invest at least INR 4,150 crore (about $500 million) to start local manufacture within three years are eligible to import up to 8,000 EVs per year at a drastically reduced charge of 15% under the proposal.

    The programme is anticipated to start for applications shortly and run through March 15, 2026. The goal of the policy is to establish India, the third-largest automobile market in the world, as a major location for EV investments.

    India is still interested in EVs even though demand for them is slowing down globally. A minimum revenue criterion of INR 5,000 crore in the fourth year and INR 7,500 crore in the fifth year has been introduced by the Indian government, which has lately tightened eligibility requirements under the scheme. Businesses that fall short of these goals risk fines of up to 3% of the revenue deficit.

    Tesla’s Challenges in the Indian Market

    By generating EVs, batteries, and charging systems domestically, Tesla’s gigafactories might strengthen India’s IT and manufacturing industries. Tesla must first gain acceptance, which is not without its difficulties. Given India’s dealer-centric market, their direct sales strategy might need to be modified.

     A crucial component, after-sales service, must be strong. Pricing is another issue; the majority of passenger cars in India are under INR 20 lakh, indicating that the country is price sensitive.

    Even before taxes are applied, the least expensive Model 3 costs $42,490 in the US (about INR 37 lakh), putting it squarely in the luxury market in India.

    Tesla would need to provide more value-driven products and better prices than even China if it hopes to have more than a modest presence in India. As EV penetration keeps rising, experts believe India is prepared for more players.

    Additionally, less than 3% of all passenger vehicle sales in India are electric, indicating a low level of EV adoption. However, from 5,000 units in 2020 to over 113,000 in 2024, sales have increased significantly, according to a media report.

  • Sanofi Strikes $9.1 Billion Deal to Acquire US Biopharma Firm Blueprint

    Sanofi, a French pharmaceutical business, said on June 2 that it has agreed to purchase Blueprint Medicines Corporation, a biopharmaceutical company based in the United States that specialises in systemic mastocytosis, a rare immunological condition.

    Sanofi would pay $129.00 per share in cash under the terms of the transaction, which translates to an equity value of about $9.1 billion. According to Paul Hudson, CEO of Sanofi, the acquisition is a strategic move ahead for the company’s immunology and rare disease portfolios.

    It improves Sanofi’s pipeline and speeds up our development into the top immunology business in the world.

    Acquisition Adding More Muscle to Sanofi’s Portfolio

    The agreement will expand Sanofi’s portfolio to include a promising advanced and early-stage immunology pipeline, as well as the US and EU-approved medication Ayvakit/Ayvakyt (avapritinib), which is used to treat rare immunology diseases.

    According to the companies, Blueprint’s well-established reputation among immunologists, dermatologists, and allergists is also anticipated to strengthen Sanofi’s expanding immunology pipeline.

    For advanced and indolent systemic mastocytosis, a rare immunological illness marked by the accumulation and activation of aberrant mast cells in the gastrointestinal tract, skin, bone marrow, and other organs, Ayvakit/Ayvakyt is the only licensed medication.

    Along with BLU-808, a highly effective and selective oral wild-type KIT inhibitor that may be used to treat a variety of immunological disorders, the acquisition will also provide elenestinib, a next-generation treatment for systemic mastocytosis.

    Contingent Value Right to Blueprint Shareholders

    At the closing of the transaction, Blueprint shareholders will receive $129.00 per share in cash in addition to one non-tradeable contingent value right (CVR), which will grant the holder the right to two potential milestone payments of $2 and $4 per CVR, respectively, for the accomplishment of future development and regulatory milestones for BLU-808.

    On a fully diluted basis, the transaction’s entire equity value, including any future CVR payments, is roughly $9.5 billion.

    Hudson said that Sanofi still has a sizable capacity for other purchases and that the deal complements recent acquisitions of other early-stage medications that continue to be the company’s primary area of interest.

    About Sanofi

    An AI-powered biopharma firm focused on research and development, Sanofi is dedicated to enhancing people’s lives and fostering remarkable growth.

    With a cutting-edge pipeline that could help millions more, it claims that the company uses its profound knowledge of the immune system to develop medications and vaccines that treat and safeguard millions of people worldwide.

    Its team is driven by a single goal: to improve people’s lives by pursuing scientific miracles. This motivates Sanofi to advance and have a positive impact on its customers and the communities it serves by tackling the most pressing social, environmental, and healthcare issues of the recent times.

  • UPI Hits Record High: 18.68 Billion Transactions in May, Up 4.4% MoM

    The number of transactions using the Unified Payments Interface (UPI) increased 4.4% from 17.89 billion in April to 18.68 billion in May, setting a new record.

     There were 33% more trades than the previous year. UPI transactions experienced a 2.2% month-over-month (MoM) decline in April. The National Payments Corporation of India (NPCI) reported that UPI transactions totalled INR 25.14 Lakh Cr in May, a 5% increase from INR 23.95 Lakh Cr in April.

    Compared to 596 million in April, the average daily transaction count increased to 602 million in the reviewed month. In addition, INR 81,106 Cr was the average daily transaction value.

    PhonePe and Google Pay Lead the Race

    PhonePe and Google Pay are anticipated to remain the top two UPI players, as they have for years, even though the NPCI has not yet released the app-by-app data for the month of May.

    Together, the two companies control around 80% of the UPI ecosystem’s market share, with Paytm coming in second with a roughly 7% stake in recent months. Of the 17.89 billion transactions in total, PhonePe logged 8.36 billion in April.

    6.48 billion transactions of INR 8.42 lakh crore were registered by Google Pay. The competition is fierce outside of the top three players. Navi, CRED, super.money, Amazon Pay, and FamApp are just a few of the companies that keep fluctuating in the rankings.

    Notably, over the past few years, the NPCI has been aiming to limit third-party application providers’ (TPAPs’) market share in the UPI ecosystem to 30%. The idea has, however, been repeatedly delayed; the most recent one was moved to December 31, 2026.

    Industry Requesting for Zero Merchant Discount Rate

    The industry is increasingly calling for zero merchant discount rates (MDR) on these transactions, even as UPI is expanding. Prime Minister Narendra Modi received a letter earlier this year from the Payment Councils of India (PCI) urging him to reevaluate the 0% MDR policy for RuPay and UPI transactions.

    When banks or payment service providers handle digital transactions through UPI, they charge merchants a fee known as the MDR. To encourage digital payments across the nation, the price was reduced to zero in 2020. For large merchants exclusively, the PCI suggested charging an MDR of 0.30% for UPI.

    The Startup Policy Forum (SPF) also endorsed the initiative. The payments sector has long maintained that the zero MDR regime prevents them from making money off of their services, which has an impact on infrastructure upgrade efforts.

    The administration hasn’t made a decision on the subject yet, though. Vijay Shekhar Sharma, the founder and CEO of Paytm, recently stated that the implementation of MDR on UPI payments might lead to more competition.

  • Shark Tank India-Backed Snitch Raises $40 Million to Stitch Global Dreams & Fast Fashion Push, Led by 360 ONE Asset

    Snitch, the breakout D2C menswear brand transforming fashion for Indian men, has raised up to $40 million in its Series B funding round. The round was led by 360 ONE Asset, with participation from existing investors IvyCap Ventures and SWC Global, along with Ravi Modi Family Office (founders of Manyavar) and other angel investors, who joined in this round.

    The fresh capital will fuel Snitch’s aggressive next phase of growth:

    • Scale offline retail from 55+ to 100+ stores by the end of 2025
    • Enter quick commerce, delivering fashion in hours
    • Launch new product categories across apparel and lifestyle
    • Pilot international markets

    Siddharth Dungarwal, Founder & CEO, Snitch, said, “Built on belief, speed and an obsession with our customer, Snitch has been a force redefining fashion making in India for the world. This fundraise is a backing to our belief that Indian fashion can move with speed, scale and confidence, and truly compete at a global stage. With 120% YoY growth, 55+ stores with strong unit economics, and strong loyal customer base, we’re stepping into a bigger league, building a world-class brand with India at its heart and agility at its core. As we gear up for global expansion and soon enter the public markets, this marks a bold step towards creating one of India’s most iconic fashion stories.”

    Chetan Naik, Senior Fund Manager and Strategy Head – Technology, 360 ONE Asset, said, “Snitch is one of the fastest-growing profitable scaled D2C brands in India. It has built a unique playbook in Indian fashion, combining trend agility, digital-first execution, and omnichannel reach. With a distinctive operating model that blends weekly design launches, full-stack execution, and lean manufacturing, Snitch has demonstrated the rare ability to deliver high growth while maintaining strong unit economics and exceptional capital efficiency. Its sharp focus on men’s fashion, backed by a scalable offline model, positions it well to become a category-defining brand. We are excited to back Siddharth and the Snitch team as they lead the next phase of fashion innovation from India.”

    “Our reinvestment in Snitch further confirms our conviction in its strong execution ability, capital-efficient growth, and sharp positioning in the men’s fashion space. With a clear focus on Gen Z and millennial consumers and a scalable omnichannel strategy, the brand is well on its way to becoming a category leader. We are happy to continue supporting the team in their journey.”

    • Vikram Gupta, Founder and Managing Partner, IvyCap Ventures

    “Snitch continues to demonstrate strong supply chain management as well as high focus on customer experience. Over the last 18 months, with the offline expansion, Snitch has established itself as a truly omnichannel brand. We are looking forward to our continued partnership with Siddharth and team to grow Snitch into a leading men’s apparel brand in the country.”

    • Tuck Lye Koh, Founding Partner, SWC Global

    Snitch previously raised ₹110 Cr in its Series A round in December 2023, which laid the foundation for its offline expansion, tech stack, and product depth. Since then, it has doubled revenue, strengthened brand equity, and built a community-first approach to fashion that resonates deeply with Gen Z and millennial men.

    Founded in 2020, Snitch has become a cult favourite in India’s D2C fashion space by offering trend-first, drop-driven collections at unmatched speed. Its omni-channel model combines online agility with in-store experiences, making it a front-runner in the “fastest fashion” revolution.

    PwC India Investment Banking team acted as the exclusive financial advisor to Snitch on the successful closure of the Series B round. JSA acted as the legal counsel to Snitch on this transaction.

    About 360 ONE Asset

    360 ONE Asset is one of India’s leading asset management firms with overall alternates and public markets AUM of almost $10 billion*. 360 ONE Asset’s leading Venture Capital and Private Equity platform has an AUM of more than $3 billion. The firm has a proven track record and

    deep expertise in the financial services, technology, healthcare and consumer industries. This end-to-end platform offers a unique vantage point into private companies in India and enables the company to make well-informed investment decisions. 360 ONE Asset’s broader differentiated product suite includes AIFs, PMS and MFs spanning asset classes of public and private equity, fixed income and real assets.

    About Snitch

    Founded in 2020 by Siddharth Dungarwal, Snitch is India’s fastest-growing D2C menswear brand known for its rapid drop-driven collections. It uniquely combines weekly new designs with an omnichannel model that blends online speed and offline retail experience, making it a trendsetter in fast fashion for Gen Z and millennials.

    Snitch appeared in the second season of Shark Tank India and raised INR 1.5 crore by selling 1.5% equity. The investors included Anupam Mittal, Aman Gupta, Namita Thapar, Vineeta Singh, Peyush Bansal, and Amit Jain, valuing the company at INR 100 crore.

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  • LinkedIn Slashes Jobs: Hundreds Laid Off by Microsoft-Owned Platform

    In the midst of ongoing industry-wide reorganisation, Microsoft-owned LinkedIn has announced the layoff of 281 workers throughout California, joining a growing number of IT firms that have done so.

    A recent filing with the state’s employment agency revealed the job layoffs, which primarily affected talent account directors, senior product managers, and software engineers.

    These layoffs follow Microsoft’s announcement that, as part of larger efforts to streamline operations, it would eliminate nearly 6,000 jobs, or roughly 3% of its global workforce. The wave of layoffs draws attention to persistent issues in the computer industry, where businesses are reassessing their objectives and increasing productivity.

    LinkedIn Shrinking its Workforce

    Over the past year, LinkedIn, a prominent professional networking and recruitment platform, has experienced multiple rounds of layoffs. The corporation laid off 668 employees in its finance, talent, and engineering departments in October 2023.

    Earlier, in May 2023, 716 positions were eliminated from the operations, sales, and support teams in an effort to streamline the company and expedite decision-making. Similar upheaval still affects the larger tech sector.

    In May, Google laid off 200 workers from its global business unit, primarily impacting the partnerships and sales teams.

    Significant changes were also revealed earlier this year by parent firm Meta, which laid off 3,600 employees, or 5% of its workforce, mostly from the logistics, Facebook, and Horizon VR teams after a revised performance evaluation.

    Might Following Others to Infuse More AI in Work Operations

    Although LinkedIn has not issued a formal announcement, industry watchers believe that the layoffs were likely sparked by Microsoft’s overall strategy move towards artificial intelligence. Recently, Microsoft CEO Satya Nadella said that up to 30% of the code in a number of internal projects is now written by AI.

     This statistic highlights the increasing significance of automation in fundamental development processes. These layoffs seem to be a component of Microsoft’s broader employment cut, which is expected to impact 6,000 workers worldwide.

    In another round of layoffs earlier this month, 122 Microsoft workers in the Bay Area were let go. Although Ryan Roslansky, the CEO of LinkedIn, has not made any public statements, this quiet stands in stark contrast to the company’s 2023 layoff of 716 employees, in which Roslansky addressed the decision directly in a widely shared employee email.

    Many workers and spectators are guessing about the scope and direction of future cuts as a result of this time around’s lack of information.

    Restructuring the Entire Ecosystem

    LinkedIn, which employs more than 18,400 people full-time worldwide, has long been regarded as a reliable platform inside the Microsoft ecosystem. This most recent round of layoffs, however, suggests a possible change in strategy.

    Businesses like Microsoft are reassessing their workforce requirements as AI tools become more integrated into development, operations, and product processes.

    The layoffs’ timing also fits with a larger industry trend of operations being streamlined in the face of economic challenges and growing automation capabilities.

    Although AI increases efficiency, it also poses challenging issues about the future of human positions in tech-driven organisations, especially in fields like engineering that were previously seen to be secure.

  • Air India Grounds Turkish Deal, Shifts Aircraft Maintenance Elsewhere

    According to CEO Campbell Wilson, Air India aims to shift operations to alternative Maintenance, Repair and Overhaul (MRO) facilities in order to lessen its need for Turkish Technic for the maintenance of its wide-body aircraft. Given current geopolitical events surrounding Turkiye, the action was taken.

    Turkiye denounced India’s anti-terror efforts and expressed solidarity for Pakistan in May. On May 15, the Turkish business Celebi Airport Services India Pvt Ltd had its security clearance revoked by India’s Bureau of Civil Aviation Security (BCAS), which cited “national security” concerns.

    IndiGo was then given a last three-month extension by the Directorate General of Civil Aviation (DGCA) on May 30 to continue operating two damp-leased Boeing 777 aircraft from Turkish Airlines. The lease must be terminated before August 31 in order for the extension to remain in effect.

    In response to enquiries about Air India’s continued use of Turkish technology for wide-body aircraft maintenance, Wilson emphasised the airline’s responsiveness to public opinion and geopolitical changes while pointing out the global nature of aviation supply chains.

    “We are obviously sensitive to the national sentiment and perhaps the national wishes, but it does take a while to adjust when the circumstances change around us,” Wilson said. “So, regardless of which country we are talking about, we would clearly take cognisance of what people like us to do and expect us to do,” Wilson stated in an interview to media news agency.

    Air India Relying Heavily on Turkish Technic

    Currently, Turkish Technic does extensive maintenance on a subset of Air India’s Boeing 777 and 787 aircraft.

     According to Wilson, until local capacity is established, Air India will temporarily reroute aircraft in need of MRO services to facilities in the US, the Middle East, South East Asia, and, on a limited basis, still to Turkish Technic.

    He went on to say that in light of this latest development, Air India will try to reevaluate the locations of its planes, send less to Turkiye, and send them elsewhere. “But that does take some time because aircraft have to be maintained… We are cognisant of recent developments, and we will look to adjust our plans,” he stated.

    Air India Witnessing Substantial Growth

    Wilson claims that after its privatisation, Air India has seen significant expansion in its passenger and freight operations.

    While the revenue from passengers has doubled over this period, the revenue from the cargo segment has more than tripled.

    He said that Air India is a lot more credible a participant in the cargo industry because of its vast potential, non-stop service into major areas across the world, increased focus on cargo, improved systems, and more consistent product delivery. There’s a big upside potential.

  • Zepto’s Food License Axed by Maharashtra FDA in Mumbai’s Dharavi

    Due to non-compliance with food safety regulations, the Food and Drug Administration (FDA), Maharashtra’s food safety agency, suspended Zepto’s food business licence in Mumbai’s Dharavi area on June 1, 2025, according to a prominent media outlet.

    The report claims that during a recent inspection, the food safety agency discovered fungal growth on specific food products, inadequate cold storage temperature control, and a lack of a clear distinction between legitimate and expired goods.

    Additionally, the food safety regulator discovered that some food items were kept close to some clogged and stagnant water and that the food products were directly stored on damp and muddy floors.

    According to the news source, the FDA Minister of Maharashtra, Yogen Kadam, provided information that prompted the food safety inspection.

    Zepto’s Negligence Leads to a Stringent Action

    Kiranakart Technologies, the firm that runs Zepto, was found to have violated the Food Safety and Standards Act (2006) and the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, according to a news site story that cited the government.

    According to a statement from the Maharashtra FDA that was quoted in the news article, the results show that the license’s terms have not been followed. Thus, in accordance with Section 32(3) of the Food Safety and Standards Act, 2006, and Regulation 2.1.8(4) of the Licensing and Registration Regulations, 2011, Assistant Commissioner for Food Anupamaa Balasaheb Patil issued an order for immediate suspension.

    The authorities also stated that unless the facility reaches complete compliance and receives approval from the licensing authority, the food activities would continue to be suspended.

    Zepto Now Filling the Rectified Gaps

    In reaction to the news site, Zepto stated that they are dedicated to “rectifying” the “lapses identified” and implementing the required corrective actions in order to resume operations in the area.

    A representative for the company formally said that it is dedicated to fixing the flaws found and fortifying its procedures in order to give customers the highest and safest-quality products possible. Zepto is taking the required corrective action to get back to business as soon as possible in compliance with legal requirements and regulatory requirements.

    Zepto is committed to upholding the highest standards of food safety and cleanliness. In order to guarantee complete and prompt compliance, the spokesman further stated that the company has already started an internal examination and is collaborating closely with the relevant authorities.

    Zepto’s food licence suspension by the FDA is the most recent in a string of setbacks for the firm. Zepto recently suspended Zepto Cafe at 44 locations and witnessed a strike by its delivery partners in Hyderabad, both of which will have an effect on the company and its prospects for future expansion.

    These setbacks occur while the business is getting ready to go public and has been accumulating capital from domestic investors to create a corporation that is entirely owned by Indians.

  • Pesto Team Joins Scale AI to Advance Global AI Talent and Data Infrastructure

    Scale AI, the leading data infrastructure company for artificial intelligence, has announced the integration of the Pesto team into its organization. This strategic move aims to enhance Scale AI’s mission of accelerating the development of AI by leveraging global talent and delivering high-quality data.

    Founded in 2017, Pesto was built on the belief that “Talent is universal, but opportunity is not.” Over the past seven years, Pesto has connected skilled professionals from around the world with opportunities in the tech industry. The team’s transition to Scale AI marks a natural progression in their journey to create meaningful opportunities through technology.

    “Joining Scale AI represents a continuation of our mission to democratize access to opportunities,” said Ayush Jaiswal, co-founder of Pesto. “As AI continues to evolve, the demand for high-quality data grows exponentially. By combining our expertise in global talent with Scale AI’s infrastructure, we aim to meet this demand and contribute to the development of AI.

    Scale AI, recently valued at nearly $14 billion following a $1 billion Series F funding round led by Accel, provides data solutions to some of the world’s leading AI organizations, including OpenAI, Meta, and Microsoft. The addition of the Pesto team is expected to bolster Scale AI’s capabilities in sourcing and managing global talent for data generation and annotation tasks.

    “The integration of Pesto’s team aligns with our vision of building a data foundry for AI,” said Alexandr Wang, CEO of Scale AI. “Their experience in harnessing global talent complements our efforts to deliver high-quality data at scale, which is essential for the advancement of AI technologies.

    While Ayush Jaiswal, Pesto’s CEO, publicly announced the move, there hasn’t been any specific mention of another Co-Founder Rahul Jaimini’s involvement in the transition to Scale AI. In May 2020, he stepped down from his active role at Swiggy to join Pesto as a co-founder, while retaining his position as a board member and shareholder at Swiggy.

    As part of this transition, Pesto will be sunsetted, allowing the team to focus entirely on their new roles within Scale AI. This move underscores a shared commitment to creating economic opportunities and advancing the field of AI through collaboration and innovation.