Info Edge Ups Stake In BrainSightAI To Leverage AI, ML For Brain Mapping

Listed classifieds giant InfoEdge on Monday (July 10) said that its wholly-owned subsidiary Redstart Labs has invested INR 98.94 Lakh in Bengaluru-based deeptech startup BrainsightAI.

The deal was executed via subscription to the startup’s convertible notes. The Noida-based investor refused to divulge the aggregate shareholding in the startup.

“Redstart has agreed to invest an aggregate amount of INR 98,94,000 by way of subscribing to convertible notes. Since the note would be converted into shares in the next round…, aggregate shareholding of the company through Redstart, post this investment cannot be estimated at the time of making the intimation,” Info Edge said in a BSE filing.

Redstart already owns a 4% stake in the company on a fully converted and diluted basis. The transaction was conducted on an arm’s length basis.

In a statement, Info Edge said that the stake acquisition is part of its strategy to make investments focussed on medium to long-term value creation. On the other hand, the stake sale will enable the startup to leverage Info Edge’s extensive resource base and networks to further fuel the growth of the platform. 

Founded in 2019 by Laina Emmanuel and Rimjhim Agrawal, BrainsightAI is a deeptech startup that leverages artificial intelligence (AI), machine learning (ML) and computational neurosciences for brain mapping. The startup claims to offer an application suite that helps clinicians build bio-realistic virtual twins of a person’s brain based on a functional MRI scan. 

BrainsightAI last raised $750K from investors such as Entrepreneur First, Redstart Labs and IKP Knowledge Park in 2021. The startup also claims to have won the BIRAC BIG 15 grant from the Union government in 2020 and has also been incubated by accelerator programmes of big names such as Google, GE India Edison, and Dassault Systems, among others. 

The startup is still in the beta stage and is running pilot initiatives with healthcare institutions such as Max Healthcare, Mythri Hospital, Manipal Hospitals, and TATA Memorial Centre, among others.

At the end of March 2023, BrainsightAI was valued at INR 15.88 Cr. The deeptech platform’s turnover stood at INR 27.59 Cr (including grants) in FY23, INR 21.42 Cr in FY22 and INR 31.9 Cr in FY21.

The development is emblematic of the rise of the homegrown deeptech startup ecosystem, which has made rapid strides in the past few years. This has attracted the interest of investors who have pumped millions of dollars of capital to scale these emerging platforms. 

With the rise of popular emerging technologies such as generative AI, the space has seen rapid adoption. Indian deeptech startups raised $2.6 Bn in funding across 490 deals between January 2014 and June 2023. 

Besides, a clutch of big-ticket announcements has also been announced so far this year. In April, early-stage deeptech venture fund pi Ventures bagged commitments worth INR 100 Cr from SIDBI’s Fund of Funds for Startups (FFS).

In May, AI automation startup ZestIoT bagged $6.5 Mn in its Series A round led by IvyCap Ventures. This was followed by IoT automation platform Doppelio bagging $1.2 Mn, and WorkHack raising $1.5 Mn from multiple investors.