B2C Giants Add AI Twist, LEAP India IPO Day 2 & More

From Eternal To CARS24: AI Projects Go Big

Some of India’s biggest startups are adding a dash of AI to their core businesses and even spinning off new ventures with AI at the heart. From Eternal to CARS24, consumer-facing platforms are converting internal operational tools into standalone enterprise AI ventures to unlock enterprise revenue. 

Eternal’s Nugget Track: Eternal’s AI venture began as an internal solution for Zomato, but has since evolved into a standalone platform offering conversational AI, voice assistants, workflow automation and agentic systems to external enterprises. Closing an average of one deal a week without spending on ads, Nugget’s customers now span private banks, insurance companies, D2C brands, epharmacy and even rival Swiggy. 

With a revenue of ₹7.2 Cr in FY26, the venture is valued at ₹350 Cr and is currently cash-flow positive.

CARS24’s AI Play: The auto tech giant is taking a slightly different route with Deployment Inc, its independent AI platform designed to help enterprises operate AI systems. Instead of tools, it will deploy forward-deployed engineers (FDEs) at companies to connect AI models with internal data, redesign workflows and measure outcomes. It plans to hire 50 FDEs initially.

The Race For Enterprises AI: But Zomato and CARS24 are not alone. Fintech major Paytm plans to sell its in-house AI capabilities to external merchants and businesses, while Razorpay is also developing an agentic commerce studio. The common thesis is that consumer platforms possess valuable workflow data, distribution and operational experience that can be repackaged for enterprise customers, unlike early stage AI startups.

The Native Problem: While consumer tech startups may have an edge in distribution, enterprise software demands more than a successful internal use case. Players must navigate long sales cycles, complex integrations, data governance and relentless product support. Winning customers will also require proving measurable returns, building trust beyond their parent brands and competing with specialised AI startups.

So, can consumer tech giants turn internal AI success into durable, independent businesses? Let’s find out…

From The Editor’s Desk

LEAP India IPO Day 2

• The logistics tech company’s public issue was subscribed 49% on the second day, receiving bids for 5.62 Cr shares as against 11.49 Cr shares on offer.
• Qualified institutional buyers continued to lead bidding on day two, subscribing to their quota 61%. Meanwhile, the portions earmarked for NIIs and retail investors were subscribed 50% and 41%, respectively.
• LEAP India’s public issue comprises a fresh issue of shares worth up to ₹480 Cr and an OFS of up to ₹2,000 Cr. At the upper end of its ₹151 to ₹159 price band, the IPO values the company at ₹7,004.5 Cr.

Zostel-OYO Saga Continues

• The budget hostel chain has withdrawn its plea, which urged the Delhi HC to issue directions to the SEBI to examine PRISM’s IPO disclosures, particularly those pertaining to Zostel’s claimed 7% stake in the OYO parent. 
• This came after the HC noted that SEBI anyways will have to assess Zostel’s concerns related to the DRHP even without a specific court order. The court also granted Zostel the liberty to return, meaning that the chain plans to continue pursuing the case.
• The dispute began in 2015, when OYO signed a “non-binding term sheet” to acquire parts of Zostel’s business in lieu of an equity stake but the transaction never closed. The aftermath saw Zostel moving courts to seek either transfer of shares or damages. 

Apple Pay’s India Debut

• After years of delay, the iPhone maker is all set to roll out its payments service in India by October. The initial phase is expected to support contactless payments via Visa and Mastercard credit cards. However, UPI support is unlikely to be available at launch.
• This comes as Apple is negotiating with major Indian card issuers over its transaction economics. While it is seeking 15–20 bps of the interchange fee, some banks have proposed around 10 bps. This could shape which issuers participate in the early rollout.
• Apple had first indicated plans to bring Apple Pay to India in 2017. But the project later ran into troubles like data localisation mandates, UPI integration challenges and how payments would be routed through the domestic payments infrastructure.

Info Edge’s Q1 Profit Zooms

• The Naukri parent’s net profit surged 43% YoY to ₹490.1 in Q1 FY27 on the back of a tight leash on expenses and operating revenue jumping 11% YoY to ₹880.7 Cr in the quarter under review. 
• As usual, the recruitment segment, which includes naukri.com, Coding Ninjas and others, accounted for the biggest chunk of Info Edge’s in Q1. This was driven by increased billings, AI-led efficiencies and enterprise customers crossing the 49K mark.
•  On similar lines, the proptech vertical generated a revenue of ₹129.8 Cr in the June 2026 quarter, while losses went down by 89% YoY to ₹2.1 Cr. The company also said that its matchmaking segment saw improved billings and narrowing losses. 

GalaxEye Acquires StarOps

• The spacetech startup has acquired the Bengaluru-based spacecraft engineering company to deepen its in-house satellite engineering capabilities. The deal adds satellite bus platforms and testing infrastructure to GalaxEye’s kitty.
• The acquisition comes as GalaxEye is looking to launch two new OptoSAR satellites in the next 24 months. The satellites merge optical multispectral imaging and SAR on a 190 kg platform to enable all-weather, day-and-night Earth observation.
• Founded in 2021, GalaxEye is building indigenous earth observation capabilities for defence, national security and commercial applications. It has raised nearly $28 Mn to date from the likes of Speciale Invest, Mela Ventures and Rainmatter.

Inc42 Markets

Inc42 Startup Spotlight

Can FlatX Take On NoBroker In India’s Rental Market?

Moving cities can often be a hassle. Young professionals have to pay a big chunk of money to brokers even before they even enter a new home. FlatX is trying to remove this friction with an AI-powered rental platform that connects tenants, landlords and flatmates.

Cutting Out The Broker: Founded in 2025, FlatX enables users to discover flats, rooms and shared accommodation without relying on intermediaries. Listings come directly from landlords and existing tenants, giving renters access to the people who actually control the property and helping owners reach more serious prospects.

FlatX’s Matchmaking Algo: Its key differentiator is an AI-driven flatmate matching system. Users can discover potential roommates based on lifestyle preferences, budget, location and living habits. The platform also assists with property visits and rental agreements, creating a more streamlined rental journey.

A Win-Win For All: Besides matching tenants, the Y Combinator-backed startup also claims to verify users and listings to reduce the uncertainty that often surrounds rental searches. Its model is designed to lower upfront costs for tenants, while giving landlords a brokerage-free channel to reach verified, serious renters. 

What’s Next? Currently operational only in Bengaluru, FlatX plans to expand to Mumbai, Pune, Hyderabad and Delhi NCR. It is eyeing a piece of the homegrown rental housing market, which is projected to become a $32 Bn opportunity by 2031. So, can FlatX streamline India’s urban rental market with AI?

Infographic Of The Day

While Ola Electric’s Q1 FY27 numbers showed signs of recovery, the gap with Ather remains significant. From revenues to potential profitability, here are the six metrics that tell the story…

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