Tata Communications has bought a 51% stake in the US-based AI platform Commotion Inc. for Rs. 227 crore. The deal gives Tata Communications a stronger base in the fast-growing AI market and supports its plan to build an AI-first Digital Fabric for global enterprises.
The company closed the deal through Tata Communications Netherlands B.V. The structure includes a share purchase from earlier investors and fresh capital for Commotion. This move brings new AI abilities into Tata Communications’ Customer Interaction Suite.
Commotion works in the United States and India. The platform offers strong AI tools such as Voice AI, omnichannel customer support automation and autonomous digital agents. These tools help businesses give quick, personalised and simple customer experiences. The system also supports real-time conversations and automated tasks. Tata Communications plans to place these functions inside its Digital Fabric and Kaleyra-led customer communication services.
Commotion reported annual revenue of $118,750 for 2024. The company is small in size but strong in AI technology. This is why Tata Communications sees Commotion as a high-value tech partner. The new capabilities will help enterprises shift from basic AI experiments to full-scale AI adoption.
Tata Communications MD and CEO A S Lakshminarayanan said the deal marks a major step in strengthening the company’s customer experience strategy. He said Commotion already shows strong performance inside the Tata Communications Kaleyra system. He also said the company now moves faster toward its goal of becoming an AI-first organisation.
Commotion CEO Murali Swaminathan welcomed the partnership. He said the deal is built on trust, purpose and shared vision. He said Commotion gains speed in innovation while Tata Communications brings global reach and a trusted brand. He also said the two companies will work together to build safe, scalable and future-ready AI solutions for many sectors.
The market also watches the stock performance. Tata Communications shares gained almost 17% in the last 13 weeks and stand at Rs. 1,851. The stock remains below its peak of Rs. 2,175 from October 2024. The share price recovered 40% from the year low of Rs. 1,430. The year-to-date gain stands at 8.33%, lower than the Nifty 50 rise of 10%.
This deal gives Tata Communications a clear advantage in enterprise AI solutions. The company now holds a stronger position in customer experience technology. Commotion gains capital and entry into Tata Communications’ global network. Clients gain access to faster, smarter and more advanced AI features for customer support and internal operations.
The acquisition also signals deeper AI interest inside India’s technology and telecom space. It shows that AI now drives long-term business transformation. It also confirms that major Indian companies are investing strongly in AI platforms to stay competitive in global markets.
Disclaimer: Investors should check with certified experts before making investment decisions.
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