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, executed through its wholly owned subsidiary Tata Communications (Netherlands) B.V., was completed on December 1. The acquisition, valued at approximately ₹227 crore, includes both the purchase of shares from existing investors and a fresh capital infusion into the company.
The company expects the acquisition will strengthen its Customer Interaction Suite portfolio by integrating agentic AI and orchestration capabilities, enabling Tata Communications to deliver more intelligent, automated, and personalized solutions for customer segments.
Commotion, Inc. enables enterprises to deliver personalized, real-time customer experiences through its proprietary AI solutions. The platform provides advanced capabilities in Voice AI, Omnichannel CX Automation, and Autonomous Digital Agents, helping businesses automate complex processes, deliver personalized engagement at scale, and drive continuous innovation across customer-facing and internal functions.
Commotion Inc. had a revenue of USD 118,750 for the year ended December 31, 2024.
The company believes that acquiring Commotion and integrating its capabilities into its Digital Fabric will accelerate its own AI adoption and advance its journey to becoming an AI-first organization. This development builds on its ongoing efforts to help enterprises shift from AI experimentation 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. With Commotion’s capabilities already integrated into Tata Communications Kaleyra, we are seeing phenomenal customer traction. We expect this momentum to further accelerate our evolution into an AI-first organisation, making our Digital Fabric more intelligent, adaptive, and future-ready.”
Murali Swaminathan, CEO, Commotion Inc., added, “We are thrilled to announce this significant milestone in our journey. This isn’t just about capital. It’s about conviction, shared purpose, and the power of combining our innovation velocity with Tata Communications’ global reach, trusted brand, and digital expertise. Together, we will unlock AI’s full potential in many industry sectors, building solutions that scale responsibly and transform the way the world works. The future isn’t just coming, it’s here, and it’s global.”
Tata Communications share price trend
The company’s shares have gained strength in recent weeks, rallying 17% over the last 13 weeks to ₹1851 apiece, yet they still trade 18% below their October 2024 highs of ₹2,175 apiece. Although the shares have recovered 40% from the year’s low of ₹1,430, their year-to-date gain remains modest at 8.33%, below the benchmark Nifty 50 return of 10%.
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