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In today’s newsletter:

• 3 investors line up for MoEngage's $200 mn round
• India-UK FTA safeguards AI source code
• SoftBank, Accel exit Swiggy board

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MoEngage is stirring the SaaS waters with plans to raise $200 million, not just for growth, but for a leap back home.  

Led by ChrysCapital and joined by A91 Partners and Goldman Sachs, this round is less about cash flow and more about strategy.

• The primary round of around $100 million will be used to pay the costly flip tax required to move its legal base from the US to India, paving the way for an IPO, sources told us

• We first broke the news on April 11 that MoEngage is considering relocating its legal headquarters from San Francisco to India

• The secondary component will be used to buy shares from some of its early investors. The round is expected to close at a valuation of $750-800 million

MoEngage isn’t alone in this shift. Firms like PhonePe, Groww and Razorpay are also flipping their flags, while SaaS firms CleverTap, Gupshup and even Freo are chasing India’s favourable IPO rules.

• To be sure, Razorpay, PhonePe, Groww, and Meesho have each paid flip taxes ranging from Rs 1,500 crore to Rs 8,000 crore to shift their legal base back to India, underscoring the hefty cost for this strategic move

While US markets expect $100 million in revenue before a listing, Indian exchanges welcome tech firms with as little as $40-50 million ARR.

Find out more

When code is king, protection is policy.

For the first time in Indian trade history, the UK-India Free Trade Agreement has introduced protections against the forced transfer of source code and algorithms, a big win for India’s AI and software exporters.

• The clause, part of the digital trade chapter, offers IP security to firms building AI models, SaaS platforms, and enterprise software, aligning India with global digital trade norms.

“This represents the first time India has agreed to such a commitment,” said Ashita Jain of ORF America, calling it a “notable policy shift.”

Until now, India had resisted such clauses to preserve regulatory space.

• But with Gen AI reshaping delivery models and compressing traditional IT pyramids, Indian firms are pivoting to IP-led growth

Meanwhile, the FTA’s digital chapter also formally defines AI, machine learning, and quantum tech as “emerging technologies,” and outlines cooperation on ethical use, algorithmic transparency, and standards, key concerns in the global AI race.

This is more than a trade clause, it’s a signal.

• For Indian IT giants, startups, and the over 1,700 GCCs building AI systems, the FTA assures that their proprietary code will be protected

For UK buyers, it’s added assurance of IP integrity and software reliability.

• In a world where AI is redefining competitiveness, protecting code is protecting the future

Dig deeper

Just days ahead of its Q1 results, Swiggy’s boardroom has served up surprises.

Accel’s Anand Daniel and SoftBank’s Sumer Juneja have stepped down from Swiggy’s board, the company informed the stock exchanges on July 25. 

• This marks the third board exit this year

Earlier, Sahil Barua, CEO of logistics major Delhivery, also gave up his Swiggy board seat, citing an “increased workload.”

• Interestingly, Barua joined the board of home and lifestyle brand Nestasia shortly after

SoftBank typically gives up its board seats in the run-up to an IPO or shortly thereafter. Meesho, Paytm, and PB Fintech are some examples.

While the two executives are exiting, Swiggy has welcomed a new board member. Faraz Khalid, CEO of Noon, one of the Middle East’s leading consumer commerce platforms, has been appointed to Swiggy’s board.

• Noon has evolved into an e-commerce, quick commerce and food delivery platform, which will align with Swiggy's business plans 

Dig deeper

• India is open to sharing its AI models with the Global South, MeitY secretary S Krishnan said, positioning the country as an alternative to dominant AI ecosystems.
  
  
• Walmart unveiled plans to roll out a suite of AI-powered "super agents" designed to improve the shopping experience for customers and streamline operations.

This weekend, journey from the north to the south with two gripping movies. 

First up, Sarzameen. This action drama is set in Kashmir, where Colonel Vijay faces an impossible choice when militants kidnap his son. Years later, the son's mysterious return stirs questions of loyalty and buried trauma. 

Next, take a detour to Kerala with Ronth, a Malayalam slow-burn thriller. Two cops, one tense night, and a crisis that will change them forever.

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