Rajesh Gopinathan, chief executive officer of Tata Consultancy Services (TCS), told ETTech in an interview that technology will be the primary driver of investment worldwide over the next five years or more. He expects instability due to geopolitical conflicts and possible disruption of the global economy to, in fact, drive demand for specific technologies.
Also in this newspaper: Technology to drive investments globally: TCS chief Indian food delivery rivals beat UrbanPiper India to have over 250 unicorns by 2025: Report
Technology will drive investment globally for many more years: TCS chief Rajesh Gopinathan
Cyber security, building resilient and adaptable supply chains, various forms of data security and sovereignty-related issues will emerge as “big drivers for technology spending globally”, Rajesh Gopinathan said in an interaction with ET.
“Technology (business) will be an increasing percentage of spending, a topic unlikely to be challenged for the next several years,” said TCS’ chief executive officer and managing director.
India’s largest software services company is aiming for “profit-driven growth” as it seeks to double its revenue to $50 billion by the end of the decade. “We’re closer to a bicycle than a sports car. It’s not about running for speed, it’s organic evolution and we know balance is more important than sport,” Gopinathan said.
Read also: TCS Q4 consolidated net profit up 7.4% year-on-year, matches estimates
The $25.7 billion software giant is expected to match double-digit growth with margins of 26-28%.
Progress Letter: In fiscal year 2022, TCS grew 15.9% on the back of record deal wins, to $34.6 billion for the full year, with nearly a third of that during the last quarter. In comparison, rival Infosys grew 19.7% but saw lower operating margin at 23% compared to 25.3% reported by TCS.
Read also: Infosys, the poster child of globalization, is facing political difficulties
Rivals Swiggy, Zomato back UrbanPiper in $24 million funding round
UrbanPiper, a restaurant management platform, has raised $24 million in a new round of funding led by existing investors Sequoia Capital India and Tiger Global as well as food aggregator giants Swiggy and Zomato. This is the first time these two food-delivery giants have invested in a startup together.
What will the money be used for? The company plans to use the funds raised to enhance its product and engineering teams, strengthen its platform capabilities, as well as broaden its offerings to enable more services at restaurants.
Angel investors included Pankaj Chadha, cofounder of Zomato and Shift; Ankit Nagori, founder of CureFoods; and Sahil Goyal and Shiprocket founder Vishesh Khurana, among others.
quote: “With this investment, we will continue to expand UrbanPiper’s offerings to meet many more digital opportunities in the restaurant ecosystem,” said Gupta, CEO, UrbanPiper.
Microsoft joins Udaan’s debt financing round Microsoft Corporation has joined a debt financing round of over $200 million, according to a note sent to employees by Aditya Pandey, CFO of the business-to-business (B2B) e-commerce company. With this, Udaan has now raised a total of $225 million through convertible notes.
“We are excited to announce that Microsoft Corporation joins our offering of convertible notes launched in October last year. M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samina Capital and Ishana Capital among others participated in the offering of convertible notes,” Pandey told Udaan in an internal note.
tweet of the day
ETtech Concluded Deals
Expertia AI, the deeptech virtual recruitment platform, has raised $1.2 million in a funding round led by marquee investors Chirata Ventures and Endea Partners, with participation from Entrepreneur First and Angel Investor Archana Priyadarshini. The startup plans to assemble a team of artificial intelligence (AI) researchers and software engineers and use the funds to create brand, product awareness in the Indian market.
India likely to produce more than 250 unicorns by 2025: Report
According to a report by investment fund Iron Pillar, with 2021 being a watershed year for startup investments, India is now expected to have over 250 unicorns or privately held startups with a valuation of $1 billion or more .
It’s all about the numbers: The report states that the total value of the Indian unicorn is $535 billion. With around 130 Indian unicorns, including those residing outside India, the venture capital fund said the total unicorns in the country have more than doubled to 130 in the last 15 months alone. Indian startups raised $36 billion in risk capital in 2021, making it a significant year for fundraising, as a slew of tech firms went public in Indian markets.
Despite the ‘wait and watch approach’ of private market investors, Indian startups have still raised over $10 billion in funds during the first quarter of 2022, up from $5.7 billion in the same period in 2021, due to global macro trends. Was. Data sourced from Venture Intelligence.
Read also: ETtech Opinion – Let’s redefine the unicorn
quote: “The total number of India-made unicorns has increased from 62 to 130 in the last 15 months. While we believe this momentum may ease slightly over the next 24 months, creating 250 companies with a valuation of over $1 billion by 2025 is an extremely achievable goal for Indian founders. We are particularly excited as almost 50% of these companies are also manufacturing for markets outside India, Anand Prasanna, Managing Partner, Iron Pillar said in a statement on Monday.
After Musk, Jack Dorsey slams Twitter’s board amid takeover push
As Tesla and SpaceX CEO Elon Musk pressured Twitter’s board to let them acquire the micro-blogging platform for $43 billion, its cofounder Jack Dorsey has finally broken the silence, calling the board “constant company dysfunction”. Labeled as “. ,
The former Twitter chief executive officer (CEO) also concurred with venture capitalist Gary Tan, who posted that a badly run board could “literally make a billion dollars worth missing.”
Dorsey, who left Twitter in November last year – handing the baton to Parag Agarwal of Indian origin – with his 2.2% share, remains a member of the board till next month.
Meanwhile, Musk has said that the Twitter board should be more concerned about potential bidders other than him who have made a reasonable offer to acquire 100% of the micro-blogging platform for $43 billion.
Shareholding Pattern: Asset management firm Vanguard Group revealed last week that its funds now hold a 10.3% stake in Twitter, making it the largest shareholder. Saudi Prince Al-Waleed bin Talal, who rejected Elon Musk’s offer, owns a roughly 5.2% stake in Twitter. With a 9.2% stake, Musk is one of Twitter’s largest shareholders. Meanwhile, Twitter’s board adopted a ‘poison pill’ strategy to prevent Musk from forcibly buying it.
Larsen weighs in to merge Mindtree and L&T Infotech into $22 billion firm
Bloomberg quoted sources as saying that Larsen & Toubro Ltd is weighing the merger between Mindtree Ltd and Larsen & Toubro Infotech Ltd. The boards of Mindtree Ltd and Larsen & Toubro Infotech Ltd, the two software entities controlled by the Mumbai-based engineering firm, may consider the share swap ratio for merger as early as next week.
Deal Details: The two companies have minimal overlap in businesses or customers, and an alliance would give them better pricing power and lower costs. Discussions about the merger are ongoing and the plan could be delayed or scrapped, the Bloomberg report said.
Larsen acquired control of Mindtree in 2019. The group holds approximately 61% stake in the company, which has a market value of $8.3 billion, and approximately 74% of L&T Infotech, which has a market capitalization of $13.6 billion.
The planned merger comes at a time when software companies are facing increasing demand from enterprises adopting digitization, which has accelerated post-Covid-19.
Mindtree’s response: “We would like to clarify that the news of merger between Mindtree Ltd. and L&T Infotech is speculative in nature. In this regard, we would like to state that till date there is no information available with the company, which is required to be present in SEBI. (Listing Obligations and Disclosure Requirements) Regulations, 2015, and which may have a bearing on the stock price.”
Mindtree Q4 net profit up 49%: The IT services firm said its consolidated net profit for the quarter ended March 2022 rose 49.1% to Rs 473.1 crore as compared to Rs 317.3 crore in the same quarter last year. Sequentially, the profit figure was up 8.1%.
Revenue from operations for the quarter stood at Rs 2,897.4 crore, up 37.4% from Rs 2,109.3 crore in the same quarter a year ago. Quarterly quarter (QoQ), the growth rate stood at 5.4%.
Today’s ETtech Top 5 newsletter was produced by Arun Padmanabhan in New Delhi and Aishwarya Dabhade in Mumbai. Graphics and illustrations by Rahul Awasthi.
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