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India AI Mission cohort 2.0; Tata’s Apple windfall

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India AI Mission has selected eight more firms to build foundational AI models. This and more in today’s ETtech Top 5.Also in the letter:â–  Layoffs at scandal-hit Gameskraftâ–  Indian investors bet on AIâ–  Infra.Market’s new fundraiseEight firms selected for incentives to develop foundational AI models Ashwini Vaishnaw, minister for railways, electronics & ITIndia’s artificial intelligence (AI) push just got bigger. The government has picked eight new companies under the second round of its India AI Mission to build foundational AI models from scratch. ET was the first to report on this last week.The new cohort:Avataar.aiBharatgenFractal AnalyticsTech MahindraZeintechGenloop IntelligenceNeuroDXShodh AIContext: In the first phase, Sarvam, SoketAI, Gan AI, and Gnani AI were chosen. These startups, the IT minister Ashwini Vaishnaw said, are making good progress and are on course to showcase their models at the India AI Impact Summit next February.The Ministry of Electronics and IT (MeitY) announced a Rs 1,500 crore incentive scheme in January to support homegrown AI efforts.By mid-February, it had received 67 applications from Indian and global startups and researchers. Another 120 followed in March.Four firms were cleared in April to access subsidised GPU compute resources.What else? IT minister Vaishnaw also confirmed that administrative rules under the Digital Personal Data Protection Act, 2023 will be released within the next 10 days.Tata Electronics iPhone shipments ring in maximum gains from US Tata Electronics is raking in serious Apple cash. In FY25, it exported iPhones worth Rs 23,112 crore to the US, contributing a chunky 37% of its total revenue. The surge comes as Apple doubles down on India to hedge against Donald Trump’s tariff threats on China. By the numbers:Tata Electronics’ revenue rose 5x to Rs 75,367 crore in the 15 months to March 2025, up from Rs 14,350 crore in the calendar year 2023.Net profit jumped to Rs 2,339 crore, from Rs 36 crore in 2023.Pegatron India (60% owned by Tata) clocked Rs 34,264 crore in FY25 revenue, up 84%, with Rs 633 crore profit.Macro view: Apple has shifted a sizable chunk of its US iPhone production to India. Analysts expect Tata’s numbers to rise further this year, though Foxconn leads locally (as the largest iPhone maker).The strategy: Tata is betting big on scale. By integrating Wistron and Pegatron’s India plants, it is positioning itself as a key supplier in Apple’s global supply chain. Gameskraft lays off 120 amid real money gaming ban Online gaming firm Gameskraft has laid off 120 employees across departments after halting operations in response to the sweeping ban on real-money gaming (RMG) under the Promotion and Regulation of Online Gaming Act, 2025. The cuts come amid a sector-wide bloodbath, with multiple RMG firms shedding jobs or exiting India altogether. CFO fraud: Gameskraft has also accused former CFO Ramesh Prabhu of allegedly embezzling Rs 270.4 crore over a period of nearly five years. According to the FIR, Prabhu admitted in a March 5 email to diverting company funds for personal equity and derivatives trading, leading to estimated losses of over Rs 250 crore.Future uncertain: The Bengaluru-based company said the new legislation has upended the RMG sector, forcing a complete rethink of its business model. As the business continues to evolve in response to external realities, further structural changes may be required, it added.We reported on September 16 that Gameskraft could eventually lay off most of its 700 employees after October 31.Mass exits: The carnage isn’t limited to Gameskraft. MPL, Head Digital, Games 24×7, Zupee, and PokerBaazi have all trimmed headcount. Others, such as Hike (Rush) and Junglee Games, have shuttered. Winzo, meanwhile, exited the Indian market in August to pivot to micro-dramas in the US. Also Read: RMG ban burns a huge hole in ePay firms’ balance sheetsAI rush prompts investors to increase focus India’s venture ecosystem is going full throttle on artificial intelligence. A fresh wave of AI-focused funds is taking shape, with investors scrambling for a piece of the action across consumer apps, infrastructure, and enterprise tools. Driving the news: New funds have mushroomed in recent weeks. Natasha Malpani (formerly of Kae Capital) has launched Boundless Ventures, while Raja Gopalakrishnan, a former FIS executive, founded SenseAI Ventures. Tech veterans Satyakam Mohanty and Supria Dhanda have also rolled out Wyser, joining the race for early-stage bets. Specialist lens: Legacy software-as-a-service (SaaS) funds, such as Upekkha and Together Fund, are tilting toward AI. Haptik’s Aakrit Vaish has floated a $75 million AI-focused vehicle with marquee backers like Vijay Shekhar Sharma and Harsh Jain. Investors say AI investing requires deep domain fluency, encompassing everything from reading code and system architecture to guiding founders through product-market fit. Crowded battlefield: US VCs are circling, pushing up valuations and intensifying competition. Still, fund managers say India’s AI pool is vast enough to absorb the heat, and there is early collaboration among emerging managers who view the space as a long game.India’s AI caution: The Indian government will advocate for non-discriminatory AI access to the Global South at the upcoming New Delhi AI Impact Summit, officials said, as leading global policymakers concentrate on reducing risks associated with the rapid adoption of the technology. Infra.Market raises Rs 732 crore from promoters, existing investors (L-R) Aaditya Sharda and Souvik Sengupta, cofounders, Infra.MarketInfra.Market, an online marketplace for construction materials, has raised nearly Rs 732 crore ($83 million) from promoters and existing shareholders, valuing the company at around $2.8 billion as it prepares for a stock market debut.Key backers:Founders Aaditya Sharda and Souvik Sengupta: Rs 250 crore via promoter entity Silverline HomesNikhil Kamath’s NK Squared: Rs 200 croreTiger Global: Rs 176 croreAccel India: Rs 44 croreEvolvence India Fund: Rs 44 croreNexus Ventures: Rs 17.6 croreIPO preparation: Infra.Market told us last week that it is preparing to file its draft red herring prospectus (DRHP) with Sebi, although it did not specify a timeline. The company has already appointed merchant bankers.Past funding: In June, it raised $50 million in debt from Mars Growth Capital, taking its total borrowing from the joint venture of MUFG Bank and Liquidity Group to $150 million. Previously, in January, it raised approximately Rs 1,050 crore in equity from Tiger Global, Evolvence, Foundamental GmbH, Kamath, and Capri Global.

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