Tata Communications Acquires 51% Stake In US-Based AI platform Commotion For Rs 227 Crore - Key Details

Tata Communications on Tuesday in an exchange filing announced it has acquired a 51 per cent stake in Commotion Inc., a US-based AI-native enterprise SaaS company, to bolster its AI-led customer experience and digital transformation capabilities.

The deal, executed through its wholly owned subsidiary Tata Communications (Netherlands) B.V., was completed on December 1.

The acquisition, valued at Rs 227 crore, includes both the purchase of shares from existing investors and fresh capital infusion into the company.

The transaction is fully cash-based and does not qualify as a related-party arrangement, the company informed stock exchanges in a filing on Tuesday.

The US-headquartered Commotion Inc. focuses on building AI-powered solutions that enable enterprises to automate and personalise real-time customer engagement across digital channels. Its platform also integrates Voice AI, omnichannel CX automation, and autonomous digital agents, supporting both customer-facing operations and internal enterprise workflows.

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As of  December 31, 2024, the company had a recorded a revenue of USD 118,750 for the year ended December 31, 2024. 

On the latest acquisition move, A.S. Lakshminarayanan, MD and 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."

On the other hand, B. Murali Swaminathan, CEO, Commotion Inc., said: “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 Stock Price Movement

The company’s share price in the past 13 weeks rose 17 to Rs 1,851 apiece, however, they trade 18% below their October 2024 highs of Rs 2,175 per share.  Meanwhile, the shares have recovered 40% from the fiscal year's low of Rs 1,430 per share.