One quick thing: Karnataka’s Nandini readies for quick commerce launch in April

In today’s newsletter:

• The Dravid-Sehwag partnership driving Zoho
• Accenture earnings dash Indian IT hopes 
• Apple ramps up India hiring

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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In cricket and business, strategies define success. 

If Sridhar Vembu was Zoho’s Virender Sehwag—bold and aggressive—his successor, Shailesh Kumar Davey, is the Rahul Dravid of leadership: steady, methodical, and team-driven.

A month after Vembu stepped down and took up the role as chief scientist, Davey is laying the groundwork for Zoho’s next phase of growth.

"Zoho will continue its slow and steady growth strategy…We are willing to take the long-term bet, get the technology stack built from the ground up, and train our people," he said. 

Zoho is making a significant push into AI, particularly in Indic language models. 

• Zoho is now training smaller AI models from scratch, starting with 7 billion parameters and scaling up to 70 billion
  
  
• While still in research, Zoho aims to solve linguistic challenges before rolling out its Indic LLM

For FY23, Zoho reported a 30% revenue growth to Rs 8,703 crore, with a net profit of Rs 2,836 crore. AI investments are ramping up, with $20 million already spent on GPUs and infrastructure. 

Go deeper

Accenture’s chill might leave Indian IT cold.

Accenture’s latest quarterly results have cast a shadow over hopes of a discretionary spending revival for Indian IT companies.

• Despite early signs in the past quarter, geopolitical uncertainty and trade tensions have kept enterprises focused on business-as-usual (BAU) projects, possibly delaying new deals.

Accenture’s CEO Julie Sweet highlighted heightened uncertainty in the global economic and geopolitical environment, marking a shift from the company's Q1FY25 outlook.

Accenture’s results, often seen as a bellwether for the $283 billion Indian IT industry, indicate that the sector will take more time to come out of the woods.

• Nonetheless, federal spending cuts in the US, which accounted for 8% of Accenture’s global revenue, have had little impact on Indian IT firms due to their limited exposure to this segment.

However, a potential slowdown in Accenture’s resource segment could affect Indian IT providers operating in the manufacturing and engineering service domains.

Accenture’s headcount growth dropped to just 2,000 this quarter, down from 24,000 in the previous two quarters, signaling cautious hiring amid macro uncertainty.

• Experts believe that with a sluggish market, Indian IT firms may explore inorganic growth opportunities, especially in non-US geographies, to mitigate risks.

Bottom-line is that Indian IT firms are bracing for a prolonged period of restrained discretionary spending and slower headcount growth.

Dig deeper

Apple is doubling down on hiring in India to support its expanding manufacturing footprint, even as uncertainty looms over US trade policies under Donald Trump.

The iPhone maker has ramped up recruitment in Bengaluru, Chennai, Hyderabad, and Delhi.

• Apple’s supply chain and support workforce in India—currently over 200—could double as it scales up local manufacturing

• Hiring extends beyond iPhones, with production of AirPods expected to start in April, followed by iPads and MacBooks

The expansion is driven by Apple’s manufacturing partners, including Foxconn Hon Hai and Tata Electronics, with new suppliers like Aequs, Motherson Group, and Bharat Forge coming on board.

Foxconn’s iPhone production in India is set to rise from 11% of its global output in 2024 to 21% by 2027.

• A Nomura report estimates that 65% of “Made in India” iPhones were exported in 2024, with this figure expected to hit 84% within five years

• Apple produced 26.4 million iPhones worth $9.37 billion in 2024, with projections showing 31.5 million units ($11.89 billion) in 2025 and 40.68 million units ($16.87 billion) in 2026

With Trump’s reciprocal tariffs kicking in from April 2, Apple is balancing its global strategy.

• The company has pledged a $500 billion investment in the US over four years to ease concerns about jobs moving overseas

Dig deeper

• Perplexity AI is in early talks to raise between $500 million and $1 billion in funding at an $18 billion post-money valuation.
  
  
• Chinese AI startup Manus registered its China-facing AI assistant and was featured in state media, reflecting Beijing’s push to elevate domestic firms following DeepSeek’s disruptive, cost-efficient AI advancements.

First up is Anora, the Oscar-winning movie that tells the story of a young escort from Brooklyn who marries the son of a powerful Russian oligarch. 

• Their romance takes a dramatic turn when their families become involved, leading to a mission to annul their marriage. Watch it on JioHotstar

Next, get ready for Khakee: The Bengal Chapter, a crime thriller from Neeraj Pandey. 

• After the death of an officer, an IPS officer sets out to restore law and order in a region ruled by criminals and corrupt politicians. Check it out on Netflix

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