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Shadowfax’s muted listing; Indian AI founders head to US in droves
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Logistics company Shadowfax made a lukewarm debut at the bourses. This and more in today’s ETtech Top 5.
Also in the letter:
■ Pine Labs swings to black in Q3
■ Amazon axes 16,000 jobs
■ SoftBank to invest more in OpenAI
Shadowfax CEO Abhishek Bansal
Shadowfax Technologies made a muted stock market debut on Wednesday, with its shares listing at a discount despite strong long-term returns for early backers.
The stock opened at Rs 112 on the NSE and Rs 113 on the BSE, about 9% below the issue price of Rs 124, indicating cautious sentiment on Dalal Street toward new-age listings. It declined further to close at Rs 109.9 per share on the BSE, valuing the company at a market capitalisation of Rs 6,353 crore.
What’s the news: The IPO, which ran from January 20 to January 22, raised Rs 1,907 crore at a price band of Rs 118-124.
Shadowfax is the second new-age logistics firm to list after Delhivery, which went public in 2022 and now commands a market capitalisation of around Rs 30,000 crore.
Gain or loss: While the listing pop was missing, early shareholders are still sitting on substantial paper gains.
Quote, unquote: “We, as a company, are still very young and are long-term believers in what we are building,” Bansal told ET on the sidelines of the listing ceremony. He added that Shadowfax’s promoter-driven listing means there are no plans to sell shares for at least the next six quarters.
More than 100 founders of artificial intelligence startups are relocating to the United States, gravitating toward the San Francisco Bay Area to tap deeper capital pools, specialised talent, and enterprise customers willing to pay for AI products.
Startups such as Composio, Smallest.ai and Beatoven.ai have shifted or are in the process of shifting their base to the US, investors and founders told us.
The epicentre pull: Investors describe this as a "perceived epicentre effect." Founders say deal cycles are faster in the US, and enterprises are more open to adopting and paying for AI tools at scale. "Right now, the density of talent is in the US," observed Beatoven.ai cofounder Mansoor Rahimat Khan.
For instance:
Immigration headwinds: Lean AI teams simplify relocation, but immigration remains a challenge. Founders increasingly turn to WhatsApp groups to explore visa options, particularly the O-1 route. Investors, however, have pointed out growing uncertainty due to stricter immigration checks and prolonged processing times under the current US administration.
Amrish Rau, CEO, Pine Labs
Fintech major Pine Labs posted a consolidated net profit of Rs 42 crore in the quarter ended December, bouncing back strongly after a loss of Rs 57 crore in the same period last year.
Financials:
Context: This was Pine Lab's second earnings since its listing. The Gurugram-based payments company listed in November at a 9.5% premium over its issue price.
Astrotalk CEO Puneet Gupta
Astrotalk, which offers online astrology services, reported an 81% increase in operating revenue, driven by sustained demand for its core astrology offerings.
Financials:
Management’s take: “This was a year of steady and consistent revenue momentum for Astrotalk, underpinned by deeper engagement, higher repeat usage, and enhanced monetisation across our app-led services, particularly in urban markets,” said cofounder and chief business officer Anmol Jain.
Ecommerce giant Amazon is set to eliminate around 16,000 jobs globally in another wave of corporate redundancies, following the removal of approximately 14,000 roles in October. The latest redundancies affect Amazon Web Services, retail, and media sectors, reflecting a broader restructuring effort across the firm.
Company’s stance: Senior vice president Beth Galetti said the layoffs are aimed at “reducing layers, increasing ownership, and removing bureaucracy.” Amazon did not disclose a unit-wise breakdown, adding that teams will continue to “evaluate the ownership, speed, and capacity to invent for customers,” and make changes where needed.
What else: The move followed confusion earlier this week after an internal email mistakenly suggested that AWS employees in the US, Canada, and Costa Rica had already been informed of job losses. The message, signed by Colleen Aubrey, senior vice president of applied AI solutions at AWS, was later clarified as an error.
Also Read: Amazon to close Amazon Go, Amazon Fresh stores, focus on Whole Foods and online grocery delivery
K Krithivasan, CEO, TCS
Tata Consultancy Services chief executive K Krithivasan has pushed back against fears that artificial intelligence will lead to widespread job losses in IT services. Speaking to the Financial Times, he said automation will reshape roles rather than dismantle the $300 billion global outsourcing industry.
Tell me more: While some roles may no longer fit, he argued demand for large vendors remains strong as enterprises grapple with complex systems and AI integration.
SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman
SoftBank is in discussions to invest up to $30 billion additional in OpenAI as part of a funding round that could raise $100 billion and value the ChatGPT maker at around $830 billion, Reuters reported on Wednesday.
Dario Amodei, CEO, Anthropic
AI startup Anthropic has lifted its medium-term revenue outlook, forecasting sales could quadruple this year to as much as $18 billion and reach $55 billion in 2026, The Information reported.
The Dario Amodei-led company is also in discussions to raise about $20 billion in an ongoing funding round, doubling its initial target, the Financial Times reported on Tuesday. The round, which could value Anthropic at $350 billion, will be led by Singapore’s sovereign wealth fund GIC and US investor Coatue.
Also in the letter:
■ Pine Labs swings to black in Q3
■ Amazon axes 16,000 jobs
■ SoftBank to invest more in OpenAI
Shadowfax lists at 9% discount, still delivers up to 10x gains for early investors
Shadowfax Technologies made a muted stock market debut on Wednesday, with its shares listing at a discount despite strong long-term returns for early backers.
The stock opened at Rs 112 on the NSE and Rs 113 on the BSE, about 9% below the issue price of Rs 124, indicating cautious sentiment on Dalal Street toward new-age listings. It declined further to close at Rs 109.9 per share on the BSE, valuing the company at a market capitalisation of Rs 6,353 crore.
What’s the news: The IPO, which ran from January 20 to January 22, raised Rs 1,907 crore at a price band of Rs 118-124.
- Rs 1,000 crore came through a fresh issue.
- Rs 907 was raised via an offer-for-sale of up to 7.31 crore shares.
Shadowfax is the second new-age logistics firm to list after Delhivery, which went public in 2022 and now commands a market capitalisation of around Rs 30,000 crore.
Gain or loss: While the listing pop was missing, early shareholders are still sitting on substantial paper gains.
- Cofounders Abhishek Bansal and Vaibhav Khandelwal hold 9.28% and 7.22% stakes, valued at about Rs 613 crore and Rs 477 crore, respectively.
- Eight Roads Ventures, one of the earliest investors, is sitting on close to 10x paper return.
- Ecommerce marketplace Flipkart, which first invested in Shadowfax in 2022, holds a roughly 2.6x paper gain.
Quote, unquote: “We, as a company, are still very young and are long-term believers in what we are building,” Bansal told ET on the sidelines of the listing ceremony. He added that Shadowfax’s promoter-driven listing means there are no plans to sell shares for at least the next six quarters.
Over 100 Indian AI startup founders moving to US for funds and talent
More than 100 founders of artificial intelligence startups are relocating to the United States, gravitating toward the San Francisco Bay Area to tap deeper capital pools, specialised talent, and enterprise customers willing to pay for AI products.
Startups such as Composio, Smallest.ai and Beatoven.ai have shifted or are in the process of shifting their base to the US, investors and founders told us.
The epicentre pull: Investors describe this as a "perceived epicentre effect." Founders say deal cycles are faster in the US, and enterprises are more open to adopting and paying for AI tools at scale. "Right now, the density of talent is in the US," observed Beatoven.ai cofounder Mansoor Rahimat Khan.
For instance:
- Nitin Sharma of Antler India said about 40% of founders in its AI residency programme now plan to move to the US early, up from 5-10% in previous cohorts.
- Neon Fund’s Siddhartha Ahluwalia said nearly 20 founders across 10 startups have relocated to San Francisco over the past year.
- Blume Ventures’ Sanjay Nath said close to a dozen SaaS and AI founders in its portfolio have also moved.
Immigration headwinds: Lean AI teams simplify relocation, but immigration remains a challenge. Founders increasingly turn to WhatsApp groups to explore visa options, particularly the O-1 route. Investors, however, have pointed out growing uncertainty due to stricter immigration checks and prolonged processing times under the current US administration.
Pine Labs swings to black with cons PAT of Rs 42 crore in Q3 vs YoY loss
Fintech major Pine Labs posted a consolidated net profit of Rs 42 crore in the quarter ended December, bouncing back strongly after a loss of Rs 57 crore in the same period last year.
Financials:
- Revenue from operations: Rs 744 crore, up 24% year-on-year (YoY)
- Ebitda: Rs 171 crore, up 59% YoY
- Platform gross transaction value: Rs 4.5 lakh crore, up 29% YoY
- Number of transactions: Up 23% on year to 192.6 crore.
Context: This was Pine Lab's second earnings since its listing. The Gurugram-based payments company listed in November at a 9.5% premium over its issue price.
Online astrology service Astrotalk’s FY25 revenue surges 81% to Rs 1,176 crore
Astrotalk, which offers online astrology services, reported an 81% increase in operating revenue, driven by sustained demand for its core astrology offerings.
Financials:
- Profit before tax: Rs 285 crore, up 125% from Rs 127 crore a year ago.
- Operating revenue: Rs 1,176 crore, up from Rs 651 crore last year.
- Total expenses: Rs 1,129 crore, almost double that of the previous year.
Management’s take: “This was a year of steady and consistent revenue momentum for Astrotalk, underpinned by deeper engagement, higher repeat usage, and enhanced monetisation across our app-led services, particularly in urban markets,” said cofounder and chief business officer Anmol Jain.
Amazon cuts 16,000 jobs globally in broader restructuring
Ecommerce giant Amazon is set to eliminate around 16,000 jobs globally in another wave of corporate redundancies, following the removal of approximately 14,000 roles in October. The latest redundancies affect Amazon Web Services, retail, and media sectors, reflecting a broader restructuring effort across the firm.
Company’s stance: Senior vice president Beth Galetti said the layoffs are aimed at “reducing layers, increasing ownership, and removing bureaucracy.” Amazon did not disclose a unit-wise breakdown, adding that teams will continue to “evaluate the ownership, speed, and capacity to invent for customers,” and make changes where needed.
What else: The move followed confusion earlier this week after an internal email mistakenly suggested that AWS employees in the US, Canada, and Costa Rica had already been informed of job losses. The message, signed by Colleen Aubrey, senior vice president of applied AI solutions at AWS, was later clarified as an error.
Also Read: Amazon to close Amazon Go, Amazon Fresh stores, focus on Whole Foods and online grocery delivery
TCS CEO K Krithivasan says AI will not trigger mass layoffs
Tata Consultancy Services chief executive K Krithivasan has pushed back against fears that artificial intelligence will lead to widespread job losses in IT services. Speaking to the Financial Times, he said automation will reshape roles rather than dismantle the $300 billion global outsourcing industry.
Tell me more: While some roles may no longer fit, he argued demand for large vendors remains strong as enterprises grapple with complex systems and AI integration.
SoftBank in talks to invest up to $30 billion more in OpenAI: Report
SoftBank is in discussions to invest up to $30 billion additional in OpenAI as part of a funding round that could raise $100 billion and value the ChatGPT maker at around $830 billion, Reuters reported on Wednesday.
- The move would intensify Masayoshi Son’s “all-in” gamble following SoftBank’s earlier $41 billion investment, even as OpenAI struggles with rising compute costs.
Anthropic hikes 2026 revenue forecast 20%: Report
AI startup Anthropic has lifted its medium-term revenue outlook, forecasting sales could quadruple this year to as much as $18 billion and reach $55 billion in 2026, The Information reported.
The Dario Amodei-led company is also in discussions to raise about $20 billion in an ongoing funding round, doubling its initial target, the Financial Times reported on Tuesday. The round, which could value Anthropic at $350 billion, will be led by Singapore’s sovereign wealth fund GIC and US investor Coatue.
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