Maruti Suzuki Acquires Stake In Homegrown AI Startup Amlgo Labs

Auto major Maruti Suzuki has acquired a 6.44% stake in Delhi NCR-based artificial intelligence startup Amlgo Labs for INR 1.99 Cr (about $238K).

As part of the transaction, Maruti Suzuki would acquire 689 equity shares of Amlgo Labs of a face value of INR 10 each at a premium of INR 28,985 per share. The acquisition is expected to be completed by June this year.

The car maker said that the stake acquisition in Amlgo Labs would help it leverage the latter’s strength to make data-driven decisions.

Founded by Ajay Yadav in 2017, Amlgo Labs is a data solutions startup that provides end-to-end technical implementation/ advisory and support for analytics, cloud, engineering, machine learning, AI and reporting solutions.

Besides Maruti Suzuki, Amlgo Labs’ client pool includes companies like IDC technologies, Macquarie, Regcentric, Instamart. Its turn over in the financial year 2022-23 (FY23) stood at INR 4.87 Cr against INR 2.98 Cr in the previous year.

Maruti Suzuki made the investment in Amlgo Labs via its Maruti Suzuki Innovation Fund, which invests in startups.

This is the second investment that the company has made in an AI-led startup. In 2022, it acquired a 12.5% stake in Bengaluru-based AI startup Sociograph Solutions Pvt Ltd  for around INR 2 Cr.

Commenting on the latest acquisition, Maruti Suzuki India MD and CEO Hisashi Takeuchi said, “We have been working with startups since 2019, as a part of the Maruti Suzuki lnnovation program… Our investment in Amlgo Labs Private Limited will help us to further strengthen the quality of new models, using advanced analytics and machine learning.” 

Meanwhile, Yadav said that the stake acquisition by Maruti Suzuki will help the startup scale up and improve its offerings.

“Our collaboration with Maruti Suzuki has proven to be fruitful, helping our company augment and scale up operations. Combining our expertise in data analytics, machine learning and artificial intelligence-based solutions, with mentorship and networking opportunities offered by Maruti Suzuki, we will be able to further refine our offering,” he added.

Maruti Suzuki’s investment in the AI-based startup comes at a time when the GenAI sector is growing rapidly in the country. 

The fundraise by Amlgo Labs is the fourth investment secured by an Indian AI-led startup this month. As per an Inc42 report, India’s GenAI market size is expected to grow at a CAGR of 48% to surpass the $17 Bn mark by 2030 from $1.1 Bn in 2023. 

The Indian government has also increased its focus on pushing the adoption of AI models. Recently, speaking at the ‘Startup Mahakumbh’, Prime Minister Narendra Modi said that India will spearhead the AI transformation in the world. 

Earlier this month, the Union Cabinet also approved the IndiaAI Mission with an allocation of INR 10,372 Cr over the course of next five years.