One quick thing: InsuranceDekho bags $70 million in funding 

In today’s newsletter:

• M2P buys AI tech with Mad Street Den deal
• Kissht co-founders leave to start up 
• Another IPO from Info Edge stable

P.S.: Introducing the Tech3 Podcast, your daily dose of tech and startup insights. Monday to Friday! Check it out on Spotify or Apple Podcasts

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This ‘Chenn-AI’ deal marks a significant moment in India’s SaaS landscape!

Chennai-based fintech infrastructure firm M2P is acquiring AI startup Mad Street Den (MSD) in a cash-and-stock deal valued at $10-15 million.

• This marks a major consolidation move in India’s SaaS industry

The acquisition includes MSD’s AI platform, Vue.ai, which serves the banking, insurance, logistics, retail, and government sectors.

This is a big step for M2P as it gears up for an IPO soon.

• M2P will be integrating MSD’s AI capabilities to double down on its data-first growth strategy, positioning itself as an AI-native enterprise ahead of its anticipated IPO

• Since MSD is domiciled overseas, M2P is acquiring its intellectual property, contracts, and team rather than executing a direct acquisition

Both founders, Madhusudanan from M2P and Ashwini Asokan from Mad Street Den, also have a Chennai connection.

The SaaS space is experiencing increased M&A activity, exemplified by Insight Partners' acquisition of Eka Software and BrowserStack's purchase of Bird Eats Bug. 

• Multiple sources told us that MSD's acquisition, despite its strong AI portfolio, was driven by capital constraints and the challenges of future fundraising

Go deeper

Build, scale, exit, repeat. For startup founders, moving on is the new staying put.

Riding the wave of startup second acts, digital lending firm Kissht’s co-founders, Karan Mehta and Sonali Jindal, have moved on to start a new venture.

• Rezolv, an AI-first debt recovery startup for banks and NBFCs, went live with its first two clients in January
  
  
• The newly-minted startup has also bagged a $3.5 million seed round led by 3one4 Capital.

With regulators tightening their grip on collection practices and NBFCs dealing with rising NPAs and high costs, Rezolv steps in at the right time.

• The debt-resolution market is heating up, with players like Credgenics, Spocto, CredResolve, Creditas, and DPDZero serving lenders

Mehta and Jindal’s move mirrors a broader shift among top startup founders who are stepping away to build new ventures. 

• From PharmEasy’s Dhaval Shah and Dharmil Sheth to upGrad’s Mayank Kumar and Dunzo’s Kabeer Biswas, seasoned entrepreneurs are betting big on their next innings

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Info Edge is likely to get another winner in its hands if NoPaperForms' IPO plans go as planned. 

• The Gurugram-based enrollment automation company is looking to raise Rs 500 crore at a valuation of around Rs 2,000 crore

NoPaperForms has roped in IIFL Capital and SBI Capital for its IPO process. The company is expected to file its DRHP within the next few quarters and looking to list by the end of this year.

• Info Edge has invested around Rs 30 crore in the company for a 48% stake

• If the expected valuation holds, this could deliver a 30-fold return for Info Edge

However, Info Edge is unlikely to sell shares during the listing, going by the company’s philosophy of staying put as investors for the long term.

Given the current market sentiment, much could depend on the discussions between investment bankers and potential investors, according to sources. NoPaperForms is barely profitable, and small caps have borne the brunt of the recent decline in the stock market.

• Info Edge has seen its share price fall in February, as the value of its investments in Zomato and PB Fintech dropped

• NoPaperForms is a relatively small company, so it is unlikely to significantly impact Info Edge's shares

• However, Zomato and PB Fintech have provided much larger returns 

Dig deeper

As India advances its sovereign AI ambitions, Yotta's cloud infrastructure is set to become a key component in powering the country's indigenous Large Language Model (LLM). 

• Yotta's Shakti Cloud, among others, is being integrated into the IndiaAI portal to provide high-performance GPU compute for AI research, startups, and government institutions

A crucial element of this initiative is an automated API linkage, which will streamline compute resource allocation.

Find out more

• Anthropic has closed a deal to raise $3.5 billion at a valuation of $61.5 billion.

• A report from upGrad reveals that while 83% of professionals across 28 industries in India see AI skills as crucial, 65% consider themselves novices in the field. 

Sold out! The ICC Champions Trophy 2025 is in high demand among Indian travellers. 

• Cricket-crazy Indians have flocked to Dubai International stadium to catch their favourite players live in action

As many as 1,000 travel packages, ranging from $350 to $1,200, have been purchased by Indians across the globe.

The Men in Blue have made the tournament exciting with their strong performance, with a spot in semi-finals. Fingers crossed for team India’s win against Australia in today’s match. 

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