Maruti Suzuki invests ₹1.99 crore in AI and machine learning startup Amigo Labs, to own 6.44% equity

Maruti Suzuki on Saturday, March 23 said that it has invested over ₹1.99 crore in technology-led startup Amigo Labs Private Ltd. The carmaker said it will own an equity stake over more than 6.44% in the startup.

Amigo Labs operates in the area of cloud engineering, data analystics, artificial intelligence and machine learning, to assist companies in decision making that is driven by data.

The company in a stock exchange filing said that the investment is being made via the Maruti Suzuki Innovation Fund, an initiative to undertake strategic investments in startups that exhibit high levels of technological innovations. Prior to this, the company had also invested in Sociograph Solutions Private Ltd in June 2022.

“Our investment in Amigo Labs Private Ltd will help us further strengthen quality of new models, using advanced analytics and machine learning,” said Hisashi Takeuchi, the Managing Director and CEO of Maruti Suzuki.

Meanwhile, the founder of Amigo Labs, Ajay Yadav, said the collaboration with Maruti has proven fruitful for the startup, helping it augment and scale its 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,” Yadav said.

On another note, Maruti Suzuki, which was about half the size of its Japanese parent—Suzuki Motor Corp—about ten years ago, has not only overtaken its parent in market valuation but also has overgrown two-fold. As of Friday, Maruti Suzuki, the country’s largest automaker, commands a market capitalisation of $46.9 billion, against Suzuki’s market cap of $22.1 billion, Bloomberg data shows. Maruti overtook its parent’s market cap for the first time in January 2015.

Maruti Suzuki shares ended 3.32% higher at ₹12,304 apiece on Friday, March 22. The stock has gained 47.3% in the past year.