Tata Communications has purchased a 51% share in Commotion, an AI-native Enterprise SaaS Platform, to strengthen AI integration in its Digital Fabric. The ₹227 crore agreement is anticipated to boost its Customer Interaction Suite with strong AI capabilities.
Tata Communications, in its regulatory filing today, December 02, announced that it had acquired a 51% stake in Commotion, a leading AI-native Enterprise SaaS Platform company with operations in the US and India, to accelerate AI integration across Tata Communications’ Digital Fabric offerings, particularly within its Customer Interaction Suite.
The deal, undertaken through its fully owned subsidiary Tata Communications (Netherlands) B.V., was concluded on December 1. The deal, which is estimated to be worth ₹227 crore, consists of both new funding and the purchase of shares from current investors.
By incorporating agentic AI and orchestration capabilities, the company anticipates that the acquisition will enhance its client Interaction Suite portfolio and allow Tata Communications to provide more intelligent, automated, and customized solutions for client groups.
Commotion, Inc.'s patented AI solutions allow businesses to provide individualized, real-time consumer experiences. The platform includes advanced capabilities in Voice AI, Omnichannel CX Automation, and Autonomous Digital Agents, letting businesses automate difficult processes, deliver personalized engagement at scale, and drive continuous innovation across customer-facing and internal departments.
Commotion Inc. reported a revenue of USD 118,750 for the year ended December 31, 2024.
The corporation thinks that by acquiring Commotion and incorporating its capabilities into its Digital Fabric, it will expedite its own adoption of AI and move closer to being an organization that prioritizes AI. This breakthrough adds on its continuing efforts to assist organizations migrate from AI exploration to scalable, business-critical transformation."
A. S. Lakshminarayanan, MD & CEO, Tata Communications, said, “This acquisition marks a significant step in our journey to redefine customer experience in the AI era. We are witnessing incredible customer traction because Commotion's capabilities have already been incorporated into Tata Communications Kaleyra. We expect this momentum to further speed our transition into an AI-first company, making our Digital Fabric more intelligent, adaptive, and future-ready.”
Murali Swaminathan, CEO, Commotion Inc., stated, “We are thrilled to announce this significant milestone in our journey. This isn’t just about capital. It’s about commitment, shared purpose, and the power of combining our innovation velocity with Tata Communications’ worldwide reach, trusted brand, and digital competence. By working together, we can fully realize AI's potential across a wide range of industries, creating solutions that sustainably scale and change how the world operates. The future is here, it's worldwide, and it's not just coming.
Tata Communications share price trend
The company’s shares have gained strength in recent weeks, gaining 17% over the last 13 weeks to ₹1851 apiece, however they still trade 18% below their October 2024 highs of ₹2,175 apiece. The shares' year-to-date gain of 8.33% is still less than the benchmark Nifty 50 return of 10%, despite a 40% recovery from the year's low of ₹1,430.
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