One quick thing: Blackstone steps back, Byju's gains on Aakash battle 

In today’s newsletter:

• Indian tech to double headcount to 1.25 lakh in FY25
• AI fuels SaaS investment boom
• Maha Kumbh drives spiritual startup growth

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The Indian tech industry is experiencing a major uptick in growth, with a projected 1.25 lakh new job additions in FY25. 

• This marks a significant leap from the previous fiscal year, which saw 60,000 new jobs

According to the Annual Strategic Review report released by the National Association of Software and Service Companies (Nasscom), the Indian tech industry is ramping up its hiring efforts. 

• The sector's workforce is expected to swell to 58 lakh employees by the end of FY25

• A sharp rise from 56.74 lakh employees earlier projected for FY24

This growth comes at a time when the industry is bouncing back from a prolonged period of slower demand in key markets like the US and Europe.

Also read: Mid-level hiring outpaces fresher intake in IT, GCCs as firms seek experienced hands

Nasscom also forecasts a 5.1% growth for the Indian tech industry in FY25, pushing total revenue to over $282.6 billion.

• By FY26, India’s technology sector is on track to cross $300 billion in total revenue, Nasscom said

Key growth drivers include engineering R&D, the expansion of global capability centres (GCCs), and the increasing adoption of digital engineering across various sectors.

While the industry's outlook is optimistic, the potential impact of AI on job disruption remains a significant concern. AI is actively disrupting the IT sector. Major IT firms like HCLTech and Infosys are already observing its effects.

Speaking at the Nasscom Technology and Leadership Forum, HCLTech CEO C Vijayakumar said that AI’s impact is already being felt, with some teams delivering twice the revenue with half the headcount.

“The business model is ripe for disruption, what we saw in the last 30 years is a fairly linear scaling of IT service. I think the time is already out for that model,” Vijayakumar said. 

Infosys CEO Salil Parekh echoed these sentiments, highlighting the substantial efficiency improvements in software development driven by AI

“What CVK (C Vijayakumar) is saying is really a call for us to make sure we don’t remain complacent. There are aspects today that are growing really well and that will continue and we need to find new ways,” Parekh said.

India’s Software-as-a-Service (SaaS) space is undergoing a transformative shift, with AI emerging as the key catalyst driving investor interest in 2025. 

• In the first two months of 2025, SaaS startups have raised $1.1 billion across 28 deals

Startups like SuperOps, Whatfix, and Atomicwork are raking in significant funding by embedding AI into their core offerings. Investors are no longer just interested in cloud-based solutions; they want AI-native companies.

“SaaS 2.0 is all about AI-native companies. Investors now see the next generation of SaaS as AI-first rather than just cloud-based," said Manav Garg, Founding Partner at Together Fund.

As Indian SaaS firms scale and AI adoption accelerates, many are eyeing the IPO route to solidify their growth and offer investors clearer exit options. 

• Companies like CleverTap and BrowserStack are leading the charge, with plans to list in India’s booming IPO market

India’s IPO market is witnessing unprecedented enthusiasm, with a surge of software companies gearing up for public listings, according to Kunal Bahl, co-founder of Snapdeal and Titan Capital.

“There is an insatiable appetite for IPOs in India,” Bahl said.

DevOps, cybersecurity, customer support automation, and marketing automation are attracting significant capital due to AI-driven opportunities.

• Investors are favouring larger, strategic investments in category-defining companies

Dig deeper

As the 45-day Maha Kumbh in Prayagraj, Uttar Pradesh, draws to a close, India’s spiritual startups have found themselves cashing in on the virtual demand.

Spiritual startups like Sri Mandir, Vama, and AstroYogi, reported an unprecedented surge in both new users, as well as sales, during the period.

• On average, they witnessed a 50-70% increase in user engagement, which, as per executives at these firms, was much higher than expected

These platforms also introduced a plethora of Maha Kumbh-specific products and services, even allowing devotees to tune in to the once-in-12-years event virtually.

• For instance, Peak XV-backed Sri Mandir offered access to authentic rituals, VIP Snan services, and accommodations
  
  
• Likewise, Vama launched live kathas, home delivery of Mahakumbh Triveni Gangajal and daily Mahakumbh chadhava at Triveni Sangam

Not just devotional startups, the Maha Kumbh also sparked a gold rush for meme platforms, with marketing campaigns by brands running in lakhs.

• From Flipkart to ITC, many brands tapped into the virality of memes
  
  
• Flipkart's 10-day campaign gained over 35,000 likes, 30 million views and 5,000 comments on social media

In fact, a meme page with one million followers charged the brand Rs 2 lakh for a campaign.

• Apple announced plans to establish a 250,000-square-foot Texas factory for AI server production by 2026 and create around 20,000 US research and development jobs.
  
  
• Microsoft has begun cancelling leases for a substantial amount of data centre capacity in the US. This move may reflect concerns about whether it’s building more AI computing than it will need over the long term.

What if Microsoft CEO Satya Nadella ever decided to leave? 

• Well, it’s not something he’s seriously considering—he’s spent 34 years at Microsoft, after all.

In a recent podcast, he shared what he’d do if he ever decided to quit. His answer? 

• He’d focus on an AI metric called tokens per watt per dollar

Find out more

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