Tata Communications Acquires 51% Stake in AI Firm Commotion Inc for 25.5 Million Dollars

2 Dec 2025 , 01:36 PM

Tata Communications drew investor attention on December 2 after updating the exchanges about a key acquisition made through its Netherlands-based subsidiary. The subsidiary, Tata Communications (Netherlands) BV, has picked up a 51 percent stake in Commotion Inc for 25.5 million dollars, which works out to nearly 227 crore rupees on a fully diluted basis.

The deal structure involves two components. A portion of the funds has been used to buy shares from the founders and early investors of Commotion Inc. The rest has been infused into the company as fresh capital to support business expansion.

Out of the total amount, 15.5 million dollars went towards purchasing shares from existing stakeholders. The remaining 10 million dollars has been invested directly into Commotion Inc to strengthen its balance sheet and future growth plans.

Commotion Inc is known for building AI-driven customer experience platforms. Its technology helps enterprises offer more personalised interactions by using advanced tools in Voice AI, omnichannel automation and autonomous digital agents.

The company’s solutions are designed to help organisations automate complex workflows, improve customer engagement and scale personalised interactions in real time. These capabilities are used across both customer-facing and internal functions.

Tata Communications expects this acquisition to enhance its own portfolio of customer interaction solutions. By adding Commotion’s agentic AI and orchestration technology, the company aims to deliver more intelligent and efficient digital engagement services to its global clients.

Commotion Inc also operates a subsidiary in India, where it provides enterprise software and digital engagement solutions using its proprietary platforms. For the calendar year 2024, Commotion Inc reported a revenue of 118,750 dollars, roughly 1.06 crore rupees. The transaction was officially closed on December 1, 2025, and the share purchase has been completed.

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