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Rupee slide boosts IT; Gupshup’s valuation markdown
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The rupee’s sharp slide could give IT firms a surprise Q4 bump. This and more in today’s ETtech Top 5.
Also in the letter:
■ OpenAI buys TBPN
■ Sarvam set for mega fundraise
■ Big streamers chase microdramas
In a rare bright spot for an otherwise muted Q4, India’s IT giants could see a 10-60 basis points (0.1-0.6 percentage points) sequential revenue boost thanks to the rupee’s steep fall.
Currency tailwind: For firms that earn over 60% of their revenue from the US, the weaker rupee automatically fattens reported numbers – even if the underlying business hasn’t suddenly gotten stronger.
Why it helps: Most Indian IT companies bill clients in foreign currencies (largely, the US dollar) but report results in rupees. When the rupee weakens, every dollar of revenue translates into more rupees on the books.
Impact varies by company:
Yes, but: Even with the currency tailwind, analysts still expect a soft quarter for the $297 billion IT services industry. Brokerages peg sequential revenue growth in a tight band – from 0.5% decline to 3.5% growth, on average.
Also Read: Nimble mid-tier IT riding large deal momentum as AI rejigs biz
Beerud Sheth, CEO, Gupshup
A Fidelity Investments fund has marked down its holding in conversational messaging platform Gupshup, cutting its valuation by over 80% to $278 million from the initial mark, according to a disclosure.
Fall from peak: Fidelity first backed Gupshup in 2021 at a $1.4 billion valuation, putting it firmly in unicorn territory. The fund then trimmed that mark to $697 million in July 2023 – and has now taken another axe to it.
Current business: Founded in 2004, Gupshup provides messaging APIs and conversational tools for enterprises, and has recently layered AI into its products as well. It raised about $60 million in a mix of equity and debt funding in July 2025, but did not disclose a valuation at the time.
Over the last few years, Gupshup has been tightening its belt, cutting around 300 jobs to streamline operations. In FY25, revenue at the India unit fell 5% to Rs 1,943 crore, while net profit plunged 52%.
AI and re-rating: This markdown highlights how investors are rethinking older software and services bets in the age of AI.
Crossover funds like Fidelity routinely revisit private valuations based on business performance, macro trends and how peers are being priced.
OpenAI has snapped up TBPN, the fast-growing, live, daily tech-and-business show, in a move that pulls the AI giant deeper into shaping media and public conversation. Deal terms remain under wraps.
Tell me more:
What next? TBPN will sit inside OpenAI’s ecosystem and report into its global affairs team, led by Chris Lehane. As it integrates more closely with OpenAI, expect its ad-driven model to be dialled down.
Full circle moment: The deal caps a long relationship between Coogan and OpenAI CEO Sam Altman, going back to Altman’s early investment in meal replacement startup Soylent’s $1.5 million seed round, where Coogan was a cofounder.
Anthropic CEO Dario Amodei
Anthropic, meanwhile, has acquired AI biotech startup Coefficient Bio in a deal worth around $400 million, per The Information.
Deal details: Coefficient’s New York–based team will plug into Anthropic’s healthcare work under its Claude for Life Sciences division.
About the startup: Founded less than a year ago by AI researcher Nathan Frey, Coefficient Bio uses AI to accelerate drug delivery and automate lab experimentation.
Pratyush Kumar (left) and Vivek Raghavan, founders, Sarvam AI
Homegrown AI startup Sarvam AI is close to raising $300–350 million at a $1.5 billion valuation, Bloomberg reported Friday – one of the biggest funding rounds yet for an Indian AI company.
Funding timeline: The Bengaluru startup is expected to close the round as early as next week, with Bessemer Venture Partners leading. Global heavyweights, including Nvidia, Amazon, and Saudi-backed Prosperity7 Ventures, are also set to participate, according to the report.
Why this matters:
Noon founders Aditya Bandi (left) and Kushagra Sinha
San Francisco-headquartered startup Noon has come out of stealth with $44 million in funding from Chemistry, First Round Capital, Scribble Ventures, Elevation Capital, and Afore Capital, plus multiple angels from the tech and design sectors.
Fund utilisation: The money will go into product development, sales and marketing, and new hires, cofounder Kushagra Sinha told us. Noon pitches itself as an AI-native tool that closes the gap between product design and engineering.
India’s booming microdrama segment – so far dominated by independents like Kuku TV and Pocket FM – is about to get crowded, as large streaming platforms pile in.
Hitting play:
Some context: Microdramas are ultra-short, vertical video stories – one or two minutes per episode – built for mobile-first, snackable viewing. The format, which traces its origins to China, has exploded globally in recent years.
The discovery loop: Around 65% of viewers say they’ve discovered this kind of content in the past year, and 89% find it through social feeds – making it prime territory for the next wave of attention wars.
Also Read: Kuku FM closes $85 million funding round led by Granite Asia; valuation hits $550 million post investment
Also in the letter:
■ OpenAI buys TBPN
■ Sarvam set for mega fundraise
■ Big streamers chase microdramas
IT companies set for major windfall from sharp rupee depreciation
In a rare bright spot for an otherwise muted Q4, India’s IT giants could see a 10-60 basis points (0.1-0.6 percentage points) sequential revenue boost thanks to the rupee’s steep fall.
Currency tailwind: For firms that earn over 60% of their revenue from the US, the weaker rupee automatically fattens reported numbers – even if the underlying business hasn’t suddenly gotten stronger.
Why it helps: Most Indian IT companies bill clients in foreign currencies (largely, the US dollar) but report results in rupees. When the rupee weakens, every dollar of revenue translates into more rupees on the books.
Impact varies by company:
- Large caps like TCS, Infosys, HCLTech, Wipro, and Tech Mahindra are seen getting a 10-50 bps revenue lift, according to brokerages.
- Smaller players such as Zensar and Cyient could benefit more, with a projected 80-90 bps bump.
- Motilal Oswal and ICICI Securities expect Coforge to log the sharpest margin at 130-160 bps.
Yes, but: Even with the currency tailwind, analysts still expect a soft quarter for the $297 billion IT services industry. Brokerages peg sequential revenue growth in a tight band – from 0.5% decline to 3.5% growth, on average.
Also Read: Nimble mid-tier IT riding large deal momentum as AI rejigs biz
Fidelity slashes conversational AI platform Gupshup's valuation by 80% to $278 million
A Fidelity Investments fund has marked down its holding in conversational messaging platform Gupshup, cutting its valuation by over 80% to $278 million from the initial mark, according to a disclosure.
Fall from peak: Fidelity first backed Gupshup in 2021 at a $1.4 billion valuation, putting it firmly in unicorn territory. The fund then trimmed that mark to $697 million in July 2023 – and has now taken another axe to it.
Current business: Founded in 2004, Gupshup provides messaging APIs and conversational tools for enterprises, and has recently layered AI into its products as well. It raised about $60 million in a mix of equity and debt funding in July 2025, but did not disclose a valuation at the time.
Over the last few years, Gupshup has been tightening its belt, cutting around 300 jobs to streamline operations. In FY25, revenue at the India unit fell 5% to Rs 1,943 crore, while net profit plunged 52%.
AI and re-rating: This markdown highlights how investors are rethinking older software and services bets in the age of AI.
Crossover funds like Fidelity routinely revisit private valuations based on business performance, macro trends and how peers are being priced.
OpenAI acquires tech talk show TBPN
OpenAI has snapped up TBPN, the fast-growing, live, daily tech-and-business show, in a move that pulls the AI giant deeper into shaping media and public conversation. Deal terms remain under wraps.
Tell me more:
- Cofounded by John Coogan and Jordi Hays, TBPN will retain full editorial control – from programming to guest lineups and production.
- The weekday livestream at 11 am Pacific will also continue.
What next? TBPN will sit inside OpenAI’s ecosystem and report into its global affairs team, led by Chris Lehane. As it integrates more closely with OpenAI, expect its ad-driven model to be dialled down.
Full circle moment: The deal caps a long relationship between Coogan and OpenAI CEO Sam Altman, going back to Altman’s early investment in meal replacement startup Soylent’s $1.5 million seed round, where Coogan was a cofounder.
Anthropic acquires Coefficient Bio for nearly $400 million: Report
Anthropic, meanwhile, has acquired AI biotech startup Coefficient Bio in a deal worth around $400 million, per The Information.
Deal details: Coefficient’s New York–based team will plug into Anthropic’s healthcare work under its Claude for Life Sciences division.
About the startup: Founded less than a year ago by AI researcher Nathan Frey, Coefficient Bio uses AI to accelerate drug delivery and automate lab experimentation.
AI startup Sarvam nears $300 million raise at $1.5 billion valuation
Homegrown AI startup Sarvam AI is close to raising $300–350 million at a $1.5 billion valuation, Bloomberg reported Friday – one of the biggest funding rounds yet for an Indian AI company.
Funding timeline: The Bengaluru startup is expected to close the round as early as next week, with Bessemer Venture Partners leading. Global heavyweights, including Nvidia, Amazon, and Saudi-backed Prosperity7 Ventures, are also set to participate, according to the report.
Why this matters:
- Sarvam is fast becoming a flagship player in India’s push for sovereign AI capabilities.
- The company was a star at the AI Impact Summit in February, where it unveiled a model tuned to India’s linguistic and cultural diversity.
- Its big bet: voice-first, multilingual AI that can support 22 Indian languages.
Product design startup Noon breaks cover with $44 million funding
San Francisco-headquartered startup Noon has come out of stealth with $44 million in funding from Chemistry, First Round Capital, Scribble Ventures, Elevation Capital, and Afore Capital, plus multiple angels from the tech and design sectors.
Fund utilisation: The money will go into product development, sales and marketing, and new hires, cofounder Kushagra Sinha told us. Noon pitches itself as an AI-native tool that closes the gap between product design and engineering.
India’s microdrama market braces for big-league competition
India’s booming microdrama segment – so far dominated by independents like Kuku TV and Pocket FM – is about to get crowded, as large streaming platforms pile in.
Hitting play:
- JioStar is prepping ‘Tadka’ on JioHotstar, with 1,000 micro shows across languages and genres at launch.
- Amazon’s MX Player is working on its own microdrama slate, titled ‘Fatafat’.
- Zee Entertainment is already in the game via its platform ‘Bullet’.
Some context: Microdramas are ultra-short, vertical video stories – one or two minutes per episode – built for mobile-first, snackable viewing. The format, which traces its origins to China, has exploded globally in recent years.
The discovery loop: Around 65% of viewers say they’ve discovered this kind of content in the past year, and 89% find it through social feeds – making it prime territory for the next wave of attention wars.
Also Read: Kuku FM closes $85 million funding round led by Granite Asia; valuation hits $550 million post investment
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