Building workflows for AI agents; RevX Capital’s micro fund strategy

Hello,

What does it take to build a $100 billion software market? Two words: artificial intelligence.

The Indian software market is projected to reach a size of $100 billion by 2035—a 5x jump from its current value—largely driven by AI-led developments in automation, cost-effective software development, expanding SMB adoption, and deepening government digital initiatives.

From customer relations to search results, AI is everywhere. Now, AI agents can even speak up during a meeting.

Otter, the AI-powered automated transcription service, is launching AI agents that can provide quick assistance and boost productivity during calls and meetings.

Among other things, Otter’s Meeting Agent can answer questions based on information in the company’s meeting database, and users can ask it to schedule future meetings and draft emails using “natural voice interaction.”

While we’re on the subject, researchers have found that ChatGPT “power users,” or those who use it for a long duration, are becoming dependent upon—or even addicted to—the chatbot.

Meanwhile, Google is feeling FOMO when it comes to ChatGPT. Here’s a long read on the big changes underway at the search engine giant. 

Closer home, changes are also afoot at EV ride-hailing company BluSmart, which is seeing top-level exists amid funding troubles. 

Sources tell YourStory that top management executives, including BluSmart’s CEO Anirudh Arun, chief business officer Tushar Garg, and chief technology officer Rishabh Sood, have handed in their resignations and are currently serving their respective notice periods.

In today’s newsletter, we will talk about 

• Building workflows for AI agents
• RevX Capital’s micro fund strategy
• Unlocking profits in the food service industry

Here’s your trivia for today: Which Russian novelist wrote the short story The Queen of Spades?

SaaS

Building new workflows for AI agents

SaaS companies should look at creating a new roadmap with the emergence of artificial intelligence, says Girish Mathrubootham, Founder of Freshworks. Speaking at the keynote session at SaaSBoomi 2025 held in Chennai, Mathrubootham advised founders to "throw away" older roadmaps that only focus on building workflows for humans.

Look to the future:

• All the SaaS systems that have been built till now are built for an old world where only structured data made sense, according to Mathrubootham. Meanwhile, a new system could see AI agents and humans coexisting, creating a host of opportunities. 
• The Freshworks founder added that India’s dream of becoming a “product nation” was first fueled by SaaS and is now accelerated by AI. AI, according to him, is both exciting and scary—while it disrupts various industries, it simultaneously disrupts traditional SaaS businesses as well. 
• Mathrubootham further stated that there’s a huge potential in companies developing vertical AI SaaS solutions, such as building specialised AI agents for specific verticals, which may scale significantly in the future. 

Funding Alert

Startup: Ecofy

Amount: 12.5M

Round: Undisclosed

Startup: BluPine Energy

Amount: Rs 1,787 crore

Round: Restructured financing deal

Startup: Grow Indigo

Amount: $10M

Round: Undisclosed

Interview

RevX Capital’s micro fund strategy

At a time when traditional lenders are constrained by rigid underwriting norms, alternative credit solutions are gaining traction, particularly among companies seeking non-dilutive, flexible capital.

Amid this shift, RevX Capital is carving a niche in India’s private credit market with a focused micro fund strategy, aiming to bridge the financing gap for mid-sized businesses. In a candid conversation, Rahul Chowdhury discusses the allure of micro funds, and how macroeconomic shifts are influencing investor sentiment. 

Gaining traction:

• Smaller fund sizes allow for faster deployment, diversified exposure, and effective risk management, according to Chowdhury. For limited partners, a shorter fund life enhances liquidity by ensuring timely principal repayments and periodic yield distributions.
• According to Chowdhury, larger funds often struggle with deploying capital quickly, leading to long underwriting processes and potentially weaker investment opportunities, while micro funds have a structural advantage due to their ability to be highly selective, agile, and capital-efficient.
• Speaking about the demand for private credit, he notes real estate and infrastructure as the biggest borrowers. Healthcare, pharmaceuticals, and manufacturing are also major users of private debt.

Foodtech

Unlocking profits in the food service industry

The key to running a profitable food service business depends on how well a business can keep its wastage levels to a minimum, and technology can play a vital role in this regard. Case in point: Chennai-headquartered Rassense operates a profitable, national-level corporate food service business by deploying artificial intelligence (AI) and Internet of Things (IoT) technologies. 

Although in the early stages, Rassense has deployed technology across its operations to increase its business efficiency. With an annual revenue of nearly Rs 500 crore, the company serves clients including Maruti Suzuki, L&T, and IITs.

Integrating technology:

• According to Sanjay Kumar, CEO of Rassense, food service businesses generally have a gross profit margin in the range of 5-7%. Rassense—which produces 3.3 lakh meals every day—uses a digital platform to note all the ingredients needed, which gives it instant feedback on the quantity and quality of these products.
• According to the CEO, Rassense was formed through a leveraged buyout of a food services company CRCL LLP in 2023. At the time, the company clocked revenue worth around Rs 200 crore. Today, the figure has risen to Rs 480 crore for FY25, with an EBITDA margin of around 5%.
• Even with strong competition from players in India, including Sodexo and Compass, Rassense caters across South, North and West parts of the country, with business coming from manufacturing, education, and healthcare sectors.

News & updates

• Dodged: Apple is set to stave off a possible fine and an EU order over its browser options on iPhones after it made changes to comply with landmark EU rules aimed at reining in Big Tech.
• LNG bet: Shell Plc said it would boost investor returns through the end of this decade by reinforcing its position as the world’s top trader of liquefied natural gas. Shell will expand LNG sales by 4% to 5% annually until 2030.
• Missing out: Tesla’s sales in Europe fell for a second consecutive month in February, as the electric-vehicle maker missed out on an upswing in the continent’s EV market following Elon Musk’s interventions in regional politics.

Which Russian novelist wrote the short story The Queen of Spades?

Answer: Alexander Pushkin.

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