Krutrim Ventures into AI M&A with Semiconductor Acquisition

As the demand for artificial intelligence (AI) continues to accelerate, startups are increasingly turning to mergers, acquisitions, and acqui-hires to bolster their capabilities and enter new markets. Notably, Krutrim, a division of Ola, acquired Bodhi Computing to make inroads into the semiconductor arena, with plans to release the AI chips Bodhi 1 and Bodhi 2 in the coming years. Sarvam also expanded its AI portfolio by acquiring Samta Law and Pipable AI, subsequently launching the AI-centric Legal Workbench. ChargeBee's acquisition of Trainn, a customer training platform, exemplifies how AI companies are strategically aligning with complementary businesses to enhance their service offerings. According to Aventis Advisors, M&A activity in AI spiked from 17 transactions in 2022 to 271 in 2023, a figure projected to climb to 430 by 2025 at a 26% CAGR. The interest in such deals is partly driven by startups seeking to advance their AI trajectories, augment market presence, and gain new technological prowess as per insights from a Bengaluru-based investor. However, India's AI M&A climate, though promising, is still nascent compared to larger deals witnessed in the U.S., as remarked by Kae Capital's Gaurav Chaturvedi.