India's Tata Communications acquires 51% stake in US-based enterprise SaaS platform Commotion

Tata Group's Tata Communications has acquired a 51% stake in Commotion Inc., an AI-native enterprise SaaS platform with operations in the United States and India.

According to the company's statement, the deal will strengthen AI across Tata Communications’ digital fabric offerings, especially its Customer Interaction Suite that includes Tata Communications Kaleyra. The company said the aim is to bring contextual and converged AI-driven experiences to both customers and employees.

The acquisition will be carried out through a cash-only stock purchase agreement. Tata Communications said the total consideration is about $25.50 million, roughly Rs 227 crore. Of this, $15.50 million is for buying shares from founders and existing investors, while $10 million represents fresh capital infusion into Commotion.

Commotion’s platform combines omnichannel customer experience automation, ultra-low latency voice AI, and compliant autonomous digital agents. Its orchestration engine will be integrated with Kaleyra’s channels, Kaleyra TX Hub and CCaaS stack to automate and intelligently guide complete customer journeys. Tata Communications said this will help shift enterprise engagement from reactive responses to predictive and generative interactions.

The company added that Commotion delivers three core pillars for enterprises. These include real-time omnichannel automation for hyperpersonalised engagement, voice AI built on speech-to-speech models, and digital agents that are policy-aware and capable of operating across customer-facing as well as internal enterprise functions. Commotion reported revenue of $118,750, or about Rs 1.06 crore, for the twelve months ended December 31, 2024.

Tata Communications said absorbing Commotion into its digital fabric will fast-track its own AI adoption and support its longer-term plan to become an AI-first organisation. It also builds on the company’s efforts to help enterprises move from early AI experimentation to scaled, business-critical use cases.

A. S. Lakshminarayanan, MD and CEO of 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.”

Murali Swaminathan, CEO of Commotion Inc., said: “We are thrilled to announce this significant milestone in our journey. 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.”