TCS Q1 profit rises 4.6%; Nilekani's Fundamentum launches Fund III

Hello,

Big Tech’s tussle with Indian regulators is only getting louder. This week, Truecaller, Google, and Meta found themselves navigating legal and policy challenges that could shape how millions of Indians use digital services.

Truecaller has publicly accused the Telecom Regulatory Authority of India (TRAI) of preventing it from displaying community-reported spam warnings for calls from the 1400 and 1600 number series. CEO Rishit Jhunjhunwala argues the restriction has made it easier to misuse these numbers and eroded trust in legitimate business calls.

Meta, meanwhile, remains under the government’s scanner over child sexual exploitative and abuse material (CSEAM) allegedly promoted through Instagram ads. IT Secretary S Krishnan said the Centre will decide its next steps after reviewing Meta's response to the notice issued last week. 

Separately, Meta plans to begin manufacturing its in-house AI chip, Iris, from September to power AI across Facebook and Instagram.

Google is also challenging an Indian court ruling that found it infringed a company’s trademark by allowing competitors to bid on its name as an advertising keyword. The verdict could have far-reaching implications for India’s online advertising market, where Google generated $4.1 billion in gross ad revenue last year.

Elsewhere, Infosys Co-founder Nandan Nilekani will step down as a general partner at venture capital firm Fundamentum Partnership as it launches its third fund, targeting around $200 million. He will remain the fund’s anchor investor while continuing to advise the firm and mentor portfolio companies.

In today’s newsletter, we will talk about 

• TCS Q1 profit rises 4.6%
• India's mobile gaming revenue to hit $2.4B by 2029

Here’s your trivia for today: What alcoholic drink is made with juniper berries?

Corporate

TCS Q1 profit rises 4.6%

TCS kicked off FY27 with steady growth, reporting a 4.6% rise in net profit and nearly 14% revenue growth, driven by strong demand for AI-led transformation deals despite a challenging macroeconomic environment. The country's largest IT services company also signalled continued confidence in enterprise AI spending, backed by a strong deal pipeline and steady hiring momentum. 

Earnings snapshot: 

• Revenue rose 13.9% to Rs 72,275 crore, supported by major AI deals, including an $800 million transformation contract with SKF. The company's AI business reached an annualised revenue run rate of $2.6 billion.
• TCS secured $9.5 billion in total contract value during the quarter, with CEO K Krithivasan citing strong momentum in AI, cybersecurity, cloud, and modernisation services.
• TCS added 9,279 employees sequentially, marking the third straight quarter of workforce expansion, even as operating margins dipped slightly to 24% due to annual salary hikes. 

Gaming

India’s mobile gaming revenue to hit $2.4B by 2029

India's mobile gaming market is no longer just about massive download numbers—it's becoming a serious revenue story. A new report shows gamers are spending more, new genres are taking off, and a broader mix of players is reshaping one of the world's largest gaming markets.

Driving growth:

• India’s mobile gaming industry is projected to grow from $1.1 billion in 2025 to $2.4 billion by 2029, driven by higher in-app spending, digital payments, and stronger engagement, said a report titled ‘India's State of Play’, authored by Naavik. 
• While BGMI and Free Fire MAX still dominate spending, genres such as strategy, MOBA, card battlers, geolocation, and simulation games are posting some of the fastest growth.
• Nearly 45% of puzzle gamers are women, over half are aged 35 and above, and Indian-made titles like Ludo King and Cricket League continue to outperform many global games, reflecting a maturing and more inclusive ecosystem, said the report.

News & updates

• AI talent: The government is collaborating with IT industry body Nasscom to develop an AI curriculum for undergraduate programmes, while also focusing on reskilling and upskilling graduates for an AI-driven workforce.
• Energy: Oil prices rose on Thursday as markets assessed the escalating ‌conflict between the US and Iran and its potential impact on efforts to end the war and fully reopen the Strait of Hormuz. 

What alcoholic drink is made with juniper berries?

Answer: Gin

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