Tata Communications Acquires Commotion Inc Stake

New Delhi, Dec 2 (PTI) Tata Communications, on Tuesday announced it has acquired 51 per cent stake in Commotion Inc., an AI-native enterprise SaaS platform company with US and India operations, for a total consideration of Rs 227 crore.

This amount includes a combination of purchase of stock from existing shareholders as well as capital investment in the company.

Tata Communications, in a release, said 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 organisation.

This development builds on the company's ongoing efforts to help enterprises shift from AI experimentation to scalable, business-critical transformation, according to the release.

The acquisition marks a significant step in accelerating AI integration across Tata Communications' digital fabric offerings, particularly within its Customer Interaction Suite, that includes Tata Communications Kaleyra, to deliver contextual and converged AI driven experiences for both customers and employees, the release said.

The transaction will be executed as a cash-only acquisition on a fully diluted basis through a Stock Purchase Agreement.


"The total consideration for the acquisition is approximately USD 25.50 million (Rs 227 crore). Out of the total consideration, USD 15.50 million is towards purchase of stocks from the founders and other external investors in the target and USD 10 million is towards capital contribution in the target company," the BSE listed Tata Communications said in a statutory filing.

Commotion offers three "force-multiplying pillars", the release said adding this includes omnichannel CX automation for real-time, data-driven, hyperpersonalised engagement; voice AI solutions built on ultra-low latency speech-to-speech AI models; business-ready autonomous digital agents that are compliant, intelligent, policy-aware AI entities that operate across customer-facing and internal enterprise functions.

A S Lakshminarayanan, MD and CEO, Tata Communications said the stake acquisition marks a significant step in the company's 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," he said.

Murali Swaminathan, CEO of Commotion Inc., said the move aims to unlock AI's full potential in many industry sectors, building solutions that scale responsibly and transform the way the world works.

Commotion, Inc. had a revenue of USD 118,750 (Rs 1.06 crore) for the 12 months period ended December 31, 2024.