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In today’s newsletter:

• Darwinbox lands $140 million in funding
• WhatsApp, emails open to crypto scrutiny under I-T bill
• Indian IT majors slash bench time

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In a move set to elevate its global footprint, cloud-based HR technology platform Darwinbox has raised $140 million in funding.

The round was co-led by Partners Group and KKR, with additional backing from Gravity Holdings. 

"With top-tier investors backing us, we’re poised to amplify our global momentum and deliver innovative AI-powered solutions for thousands of enterprises worldwide," Darwinbox co-founder Jayant Paleti said.

The company plans to use the fresh capital to support technology development and international expansion efforts.

With over 1,000 enterprise clients, Darwinbox has already established a strong presence across Asia Pacific, the Middle East, the UK, and the US.

• Southeast Asia and India remain key revenue drivers

The firm joined the unicorn club in 2022 after it announced raising $72 million led by TCV at a valuation of over $1 billion. 

• In 2023, Microsoft invested an undisclosed amount in Darwinbox

The funding for Darwinbox comes at a time when the SaaS sector is undergoing a resurgence, with investors increasingly backing companies that are integrating AI-driven capabilities into their offerings.

• Startups such as SuperOps, Whatfix, and Atomicwork have recently raised large rounds  

• In the first two months of 2025 alone, SaaS startups have raised nearly $445 million in funding

Find out more

This might sound like a scene from a thriller, but it’s real—India’s tax officials could soon have the power to sift through your emails and WhatsApp chats, especially if you’re dealing in crypto.

A proposal in the revamped Income Tax Bill grants officials access to electronic records, including emails and communication platforms like WhatsApp and Telegram, if they suspect undisclosed cryptocurrency holdings.

• The bill, which seeks to replace the I-T Act of 1961, was recently introduced in the Parliament and is being reviewed by a select committee

The move comes at a time when the crypto industry is witnessing a bounce back in trading after a prolonged slump. 

• The proposal seeks to block tax evaders from taking advantage of loopholes in the country's digital economy

• Cryptocurrency transactions are already taxed at a flat 30% rate on gains, with 1% Tax Deducted at Source 

To be clear, tax officials can already inspect electronic records, but the new bill extends this to virtual spaces to track undisclosed crypto holdings, according to chartered accountant Hemant R.

India is tightening its grip on the crypto industry, from imposing onerous taxes, strict compliance rules, and tough scrutiny under anti-money laundering laws to now rolling out regulatory measures aimed at curbing tax evasion.

Go deeper

Last week, industry body Nasscom stated that Indian IT services companies will hire more in FY25, despite the negative quarterly headcount additions seen in Q3.

• One possible reason for the latter is that top Indian IT firms are opting for a leaner bench

A "bench" refers to employees who are on the payroll but are not actively deployed on any projects.

• Over the past year, bench time for employees has decreased from 45-60 days to around 35-45 days
  
  
• This is a major concern for many, as they may end up being laid off once their time on the bench is up

Staffing firms suggest that top IT firms like TCS, Infosys, Wipro, HCLTech, and Accenture have reduced their bench capacity from 10-15% of the overall headcount to just 2-5%.

It’s easy to guess. The IT sector's revenue growth has continued to dwindle, and even in the slightly better fiscal year of 2025, growth will likely remain in the low single digits.

• This has led firms to rush to defend margins and optimise employee utilisation rates to save costs

Moreover, AI-driven productivity gains for customers have made the situation even more challenging for IT employees, turning it into a double whammy.

Go deeper

• Ola has partnered with Lenovo to develop India’s largest supercomputer and is working on the 700-billion parameter Krutrim 3 model.
  
  
• Beacon.li, an AI-powered product assistant startup, has raised $7 million in series A funding from ex-KKR India CEO Sanjay Nayar’s Sorin Investments.
  
  
• Amazon has formed a new agentic AI group, led by AWS executive Swami Sivasubramanian, to help users and customers automate more of their lives.

AI is powerful—maybe too powerful. 

• But the real challenge isn’t just building it; it’s making sure it stays aligned with human values 

In Human Compatible: Artificial Intelligence and the Problem of Control, Stuart Russell explores how we can design AI that benefits humanity rather than, well, accidentally wiping us out. 

Check it out

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