This amount includes a combination of purchase of stock from existing shareholders as well as capital investment in the company.

Tata Communications acquires 51% stake in Commotion Inc in Rs 227 cr deal

Tata Communications Acquires 51% Stake in Commotion Inc.

Tata Communications, a leading global digital ecosystem, has announced the acquisition of a 51% stake in Commotion Inc., a pioneering AI-native enterprise SaaS platform company. The acquisition values Commotion at Rs 227 crore, with the consideration consisting of a combination of stock purchases from existing shareholders and capital investments in the company.

About Commotion Inc.

Commotion Inc. is an AI-native enterprise SaaS platform company with operations in the US and India.
The company offers three key "force-multiplying pillars":

Omnichannel CX automation for real-time, data-driven, hyperpersonalised engagement.
Voice AI solutions built on ultra-low latency speech-to-speech AI models.
Business-ready autonomous digital agents that are compliant, intelligent, policy-aware AI entities operating across customer-facing and internal enterprise functions.

About the Acquisition

The acquisition marks a significant step in accelerating Tata Communications' AI integration across its digital fabric offerings, particularly within its Customer Interaction Suite. The transaction will be executed as a cash-only acquisition on a fully diluted basis through a Stock Purchase Agreement.

Key Highlights:

Total consideration for the acquisition: approximately USD 25.50 million (Rs 227 crore).
Purchase of stocks from founders and external investors: USD 15.50 million.
Capital contribution in the target company: USD 10 million.

CEO Comments

A S Lakshminarayanan, MD and CEO of Tata Communications, said, "The stake acquisition marks a significant step in our journey to redefine customer experience in the AI era." He added, "With Commotion's capabilities already integrated into Tata Communications Kaleyra, we are seeing phenomenal customer traction. We expect this momentum to further accelerate our evolution into an AI-first organisation, making our Digital Fabric more intelligent, adaptive, and future ready."

Murali Swaminathan, CEO of Commotion Inc., said, "The move aims to unlock AI's full potential in many industry sectors, building solutions that scale responsibly and transform the way the world works."