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In today’s newsletter: 

• BPMs ride the AI wave, outpacing IT peers
• India’s Rs 1 lakh cr bet on quantum, chips
• RMG Ban: Flutter takes $556 mn hit on Junglee

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AI is turning the back office into the new tech frontier.

Business Process Management (BPM) firms are breaking out of their old mould as Genpact, EXL, and Firstsource post stronger AI-led growth than many of their IT peers.

• Data and AI now make up more than half of EXL’s revenue and 48% of Genpact’s

Investors are noticing the shift, with some BPM firms commanding higher P/E multiples than established IT services companies.

Genpact’s Advanced Technology Solutions business grew to $622 million in Q3, or 24% of revenue, and is now driving most of its incremental growth.

• EXL’s Data and AI-led vertical has grown about 18% to $298.5 million and is on track to hit one billion dollars by year-end

Firstsource closed just under the one-billion-dollar mark after a 23% rise in revenue as its UnBPO model gains traction.

AI has lowered the barrier for BPM firms to build technology capability and narrow the longstanding gap with IT services.

• Integrated tech operations have become a core demand area as enterprises try to merge data, workflows and automation

This is allowing select BPM players to win mandates that were earlier seen as IT-first opportunities.

The integration of technology and operations, known as Tech Ops, is changing where enterprise budgets are flowing and which firms capture the next wave of AI-led demand.

• Companies still weighed down by process and data debt are finding BPM players better positioned to modernise day-to-day execution

The next phase will hinge on who can scale AI-led operations faster while IT firms wait for productivity gains to translate into revenue growth.

Dig deeper

India’s deep tech dreams just got a Rs 1 lakh crore boost.

The government's Rs 1 lakh crore Research, Development and Innovation (RDI) scheme under the Anusandhan National Research Foundation (ANRF) is set to fund long-term projects in tech-intensive sectors such as quantum computing, semiconductors and AI.

• The scheme, cleared by the Union Cabinet earlier this year and launched on November 3, aims to fix India’s deep tech funding gap and build global competitiveness in high-impact sectors

The scheme zeroes in on next-generation hardware and computing, funding projects in:

• Quantum computing architectures and quantum communication systems, such as Quantum Key Distribution (QKD)
  
  
• Advanced-node semiconductor fabrication, chip design and high-precision components
  
  
• Neuromorphic processors and edge AI accelerators that power AI workloads 

“This aligns directly with national missions like the India Semiconductor Mission, National Quantum Mission and ISRO’s space technology roadmap," an ANRF document reviewed by us said.

According to ANRF, the supported technologies will address pain points, from cybersecurity threats and chip shortages to automation gaps and performance bottlenecks. 

“Private players can capture strategic niches in multi-trillion-dollar global deep tech markets, integrate into high-value supply chains and develop export-ready IP-led businesses,” the document added.

The scheme also carves out funding for AI applications tailored to Indian use cases. Such as:

• Precision agriculture through drones, sensors and AI-based soil management
  
  
• Healthcare diagnostics, education tools and public service delivery
  
  
• AI safety, validation frameworks and development of indigenous AI chips 

Find out more

The financial fallout from India’s real money gaming ban is beginning to surface in the earnings results of both global and domestic firms.

Global betting giant Flutter has taken a $556 million hit tied to Junglee Games shutting down its real-money gaming business in India.

• Junglee Games operates online rummy platform Junglee Rummy and fantasy gaming platform Howzat with a combined userbase of 150 million

Flutter Entertainment CEO Peter Jackson said he was “frustrated” by the speed at which the bill became law (a whirlwind 96 hours!) and expressed hope for clearer guidance on whether any games of skill might get a shot at returning in the future. 

"We're going to maintain the Junglee products on a free-to-play basis...We're doing all the lobbying and legal sort of challenges that you'd expect us to," he said. 

Canadian PE firm Clairvest said its Rs 760 crore wager on A23 parent Head Digital Works is also now worth zero. It first backed the company in 2018. 

• Clairvest now plans to focus its investments in North America going forward, CEO Ken Rotman said, citing the "negative experience with Head Digital Works and other recent experiences investing abroad."

• Nazara Technologies took a one-time impairment charge of Rs 914.7 crore on its investment in Moonshine Technologies (PokerBaazi). The hit pushed Nazara into a Rs 33.9 crore loss in Q2FY26, its first loss since going public in 2021
  
  
• Fintech major Paytm also saw its consolidated net profit plunge 82.9% to Rs 21 crore for the quarter ended September 2025, after taking an impairment charge of Rs 190 crore on loans extended to its gaming joint venture First Games
  
  
• In October, Delta Corp said it had written off Rs 378.34 crore in investments tied to Deltatech Gaming, Head Digital Works and Openplay Technologies on a standalone basis, and Rs 459.52 crore on a consolidated level.

Go deeper

• Former Twitter CEO Parag Agrawal’s AI startup, Parallel Web Systems, has raised $100 million in fresh funding to develop web search infrastructure tailored for AI agents and secure partnerships with online content owners.
  
  
• Cybersecurity company Deepwatch has laid off dozens of employees in a restructuring move aimed at accelerating its investments in AI and automation.

As India chokes under post-Diwali haze, Policybazaar data shows pollution is now hitting both lungs and wallets. 

Of 4 lakh claims (2022–2025), 43% involve kids under 10, with Delhi leading at 38% of all cases. 

• The average pollution-related hospital bill? Rs 55,263, with daily costs topping Rs 19,000

Respiratory illness costs are up 11%, and cardiac ones 6%, making clean air India’s most unaffordable luxury. Find out more

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