How may (A)I help you; Darwinbox bags OTPP funds

Time of India

3 days ago

How may (A)I help you; Darwinbox bags OTPP funds
Also in the letter:
Etailers dial AI for customer service, buyers miss 'human touch'
Tell me more:
Ecommerce giants, quick commerce players, and a raft of new-age brands have all shifted to AI-led customer support for routine, level one queries.
Industry experts warn that poor service, especially in the time sensitive quick delivery space, could drive users away.
The AI tweak:
Several are deploying more advanced generative AI bots, including those with conversational abilities, while simultaneously hiring human agents who are trained to work with AI tools.
The goal is to offer a seamless blend of speed, efficiency and empathy.
Quote, unquote:
Darwinbox secures $40 million from Canada's OTPP
Deal details:
The round was led by Teachers' Venture Growth (TVG), OTPP's late-stage and growth investment platform.
The transaction involved a mix of primary and secondary components, with a blended valuation of $1 billion.
Peak XV Partners partially exited in the secondary component, clocking a 10x return on its initial investment.
Funding history:
Darwinbox last hit a $1 billion valuation in 2022 after raising $72 million from Netflix-backer TCV.
In March 2025, it raised $140 million, largely through secondary sales.
That round brought private equity majors KKR and Partners Group on board, while Lightspeed and other early investors partially cashed out.
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What's next:
Cyient to leverage IP rights for chip design ambitions
Driving the news:
Cyient will harness its demerged entity, Cyient Semiconductors, to scale design capabilities in power management and machine-to-machine communication.
These efforts will target the automotive, data centre, medical equipment, aerospace, and defence sectors.
A $100 million investment is planned over the next 12 to 24 months, Bodanapu said.
But, why?
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Wish you a very Happy Independence Day! Online platforms are trying to perfect the mix of human and AI in customer care. This and more in today's ETtech Morning Dispatch.■ Cyient's semicon ambitions■ Cognizant pay hikes■ Myntra turns festiveIn a bid to streamline operations and cut costs, online retailers are rapidly automating their customer service using artificial intelligence . But while AI handles basic queries, many shoppers say it fails to resolve more complex issues, and leaves them longing for the human touch.To bridge the gap, platforms are evolving their strategies.'A chatbot is almost a commodity, right? But it's not about that. It's about whether we can use some of these tools to really make a difference for our customers because their interaction with AI has to be somewhat personal,' said Samir Kumar, country manager for Amazon India, in a conversation with ET.(L-R) Jayant Paleti, Chaitanya Peddi and Rohit Chennamaneni, cofounders, DarwinboxDarwinbox, the HR tech unicorn, has raised $40 million (about Rs 350 crore) from Ontario Teachers' Pension Plan (OTPP), as first reported by ET on August 7.This marks one of OTPP's biggest HR SaaS (software-as-a-service) bets in Asia-Pacific. In July last year, it co-led a $140 million investment in Japan's SmartHR, alongside KKR.Interest in Darwinbox has spiked since the March round, a person familiar with the matter told us. The company is now nearing $100 million in annualised recurring revenue, a major benchmark in SaaS growth.ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.Interested? Reach out to us at [e-mail] to explore sponsorship opportunities.Krishna Bodanapu, managing director, CyientTechnology solutions firm Cyient plans to deploy its portfolio of 900 intellectual property rights (IPRs) to accelerate chip design across high-growth industries , managing director Krishna Bodanapu told us.The company currently outsources production of five million chips to global foundries Building in-house semiconductor capabilities will help lower costs and improve strategic control. More crucially, Cyient wants to capitalise on growing global demand as nations seek to de-risk chip supply chains.'A company that can design and manufacture chips will have a huge opportunity at a time when the geopolitics of semiconductor supply chains are rebalancing with countries looking to de-risk the source of supply,' Bodanapu added.The US-headquartered IT major announced merit-based salary hikes for 80% of its eligible employees effective November 1 after deferring increments by four months last year.The Flipkart-backed online fashion retailer introduced a zero-commission structure for brands in the women's ethnic wear space, ahead of the festive season. The new model will be in effect for three months, starting August 15.■ xAI was about to land a major government contract. Then Grok praised Hitler ( Wired ■ The head of ChatGPT on AI attachment, ads, and what's next ( The Verge ■ Twitter's ex-CEO is moving past his Elon Musk drama and starting an AI company ( Bloomberg