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Inner Sky Labs Unveils Kavach, Raises ₹300 Cr to Scale Physical AI

Ten years in the making, Inner Sky Labs exits stealth and unveils a full stack of foundation models for physical machines: how they sense the world, how they decide what to do — and Kavach, a safety layer that has the final word before anything moves.

Inner Sky Labs today unveiled a complete stack of foundation models that lets machines sense, decide and act safely around people. Every great leap in human productivity has come from a new kind of machine working alongside people: the loom, the steam engine, the industrial robot. Most of the world's economy, by some estimates as much as 80% of global GDP, is created in the physical world, where language models alone fall short. For a construction project in Delhi, a warehouse in Bhiwandi, a farm in Punjab or a car manufacturer in Stuttgart, physical AI means a smarter machine that follows their lead, intelligently takes the strain out of the job and lets their skill go further. A machine that works this close to people must be one they can trust, because a machine's mistake could hurt someone.

The stack gives a machine three things a human has by instinct: the ability to sense what's happening around it, the ability to decide what to do about it, and — critically — an independent safety check to stop any unsafe move.

Alongside the launch, the startup is closing a ₹300 Cr (about $30.9 Mn) funding round involving existing backers YourNest Venture Capital and Keshav R Murugesh, as well as new global investors.

Teaching machines to see, hear and feel

Before a machine can act safely, it has to understand what's actually happening around it — not just see it, but make sense of it the way a person does. Inner Sky Labs' perception models give a machine that understanding: the Drishti series of vision models reads a scene the way a pair of eyes would, the Shruti series of audio models makes sense of sound — a spoken instruction, the crash of something falling — and the Sparsh models give a machine a working sense of touch, so a robotic hand can tell the difference between gripping an egg and gripping a wrench. Put together, a machine stops being a sensor bolted to a motor and starts being something that actually perceives the room it's in.

Teaching machines to decide, and to think ahead

Understanding a room is only half the job — a machine also has to decide what to do next, and good judgment means thinking a step ahead. Inner Sky Labs' action models — Kriya, Prana and Karma — supply generative action intelligence to plan and carry out physical movement — reaching, gripping, walking, flying — and also to predict what happens next: if this arm moves this way, does the box slip, does the person standing nearby step forward. It's the same kind of anticipation a person uses to catch a glass before it tips, built into the machine's decision-making instead of left to reflex.

Kavach: the part of the brain whose only job is to say no

Sensing and deciding well is still not the same as being safe — a machine can understand a room perfectly and still make the wrong call. That's what Kavach — Sanskrit for "shield" — is for: a system that checks every single action a machine is about to take, and has the power to stop it, no matter what the rest of the machine has decided.

Picture a robotic arm about to swing across a factory floor. Before Kavach lets that motion proceed, it checks: is that space clear of people right now, is the planned speed safe for that area, does this action stay inside the zone it's allowed to work in. If the answer to any of those is no, the arm does not move. Not "slows down." Not "flags it for review afterward." The action is blocked before it starts.

A decade of trust, now scaling up

Inner Sky Labs already knows what it means to be trusted with something fragile. It is the company behind Miko, the companion robot that has spent the past ten years engaging and educating children to improve their social-emotional skills and is now in more than 140 countries. An early version of the same safety thinking that has spent a decade deciding what Miko may say to a child is now the foundation deciding what any machine — an industrial arm, a delivery robot, a drone — is allowed to do. In an independent evaluation by BDO’s cyber security practice, Miko's safety system caught every unsafe prompt across seven public AI-safety benchmarks, ahead of four widely used commercial AI models, and ranked first at flagging unsafe AI responses. Full methodology at www.innerskylabs.ai. A decade spent earning a parent's trust with a robot for their child is now the foundation for earning a factory's, a hospital's, and a government's trust with machines that move.

Why this matters beyond one company

As machines move into hospitals, factories, streets and homes, whoever writes the rules a machine lives by decides what that machine is allowed to do near a citizen — and today, most of those rules are written somewhere else, in a language, a legal system and a set of values that aren't their own. Inner Sky Labs' system lets any end customer or authority write its own rules — its own definition of what is safe, in its own legal language — and have a machine obey them, without depending on another company's judgment call. Built and proven in Mumbai out of more than ten years of research by IIT Bombay alumni, this is a technology that lets any country decide for itself what its own machines are allowed to do.

The full stack already runs today inside factories, classrooms and consumer products in millions of homes.

"Every robot company will eventually have to answer one question: why should anyone trust this machine near a person," said Sneh Vaswani, co-founder and chief executive of Inner Sky Labs. "For ten years, our answer was Miko — a robot trusted enough to be left with a child. Today we're answering that same question for every kind of machine, with technology built, tested and proven out of India."

“I’ve advised Sneh and the team since 2016, when they first shared this multi-decade vision with me—long before ‘Physical AI’ was even a category,” said Keshav R. Murugesh, early investor, advisor to Inner Sky Labs, and former Chairperson of NASSCOM. “Today, Physical AI is being called a $50 trillion opportunity. I am proud to see this built in India for the world. Miko was the proof point. This is the scale-up.”

Availability

The platform is available today to qualified partners by invitation, with cloud, on-premise and on-device deployment, including fully offline, air-gapped environments for operators who cannot depend on an outside network. Each model — perception, action and Kavach's safety layer — is available on its own. The company has raised over $80M to drive frontier research from investors including Chiratae Ventures, IvyCap Ventures, YourNest Venture Capital and 360 ONE.

About Inner Sky Labs

Inner Sky Labs is a Mumbai-headquartered company, with offices in the US and the UK, that created the consumer brand Miko, the children's companion robot sold globally. Founded out of IIT Bombay, Inner Sky Labs has spent over a decade building the technology that lets machines sense, decide and act safely around people, and is now bringing that same thinking to industrial robots, drones and machines everywhere.

More at innerskylabs.ai.

$400 Billion in a Decade: Why India’s Startup Golden Age Is Only Just Beginning

$400 Billion in a Decade: Why India’s Startup Golden Age Is Only Just Beginning

In The Lift-Off Nation, Rajan Anandan and Saurabh Srivastava make the case that India’s startup moment is now

India’s startups are now worth more than $400 billion combined, and they got there in about a decade. The country’s entire IT services industry took 35 years to reach about $325 billion.

The Lift-Off Nation: Why We Are Entering the Golden Age of Indian Startups, published by Juggernaut, argues this is just the beginning. It is written by two people who helped build the ecosystem they write about: Rajan Anandan, Managing Director at Peak XV Partners and former head of Google India and Southeast Asia, and Saurabh Srivastava, co-founder of NASSCOM, TiE and IAN Group and a Padma Shri recipient.

Based on more than 180 interviews with founders, CEOs, investors, policymakers and academics, The Lift-Off Nation makes the case that India, which once accounted for 25 per cent of global GDP, can rise again by harnessing its startups.

The authors give five reasons why India’s startup moment is now:
  • World-class talent is starting up.India's first big startups like Flipkart, InMobi and Zoho became training grounds. A new generation of founders learned how to build and scale at these “founder factories”, and they're now starting their own. Others are coming home after building products and services at the world's largest companies.
  • Innovation is happening in every sector. The authors call it a “Cambrian explosion”. Founders in India today are building in consumer brands, financial services, healthcare, space, AI, semiconductors and more.
  • Many founders are building for global markets from day one. 40% of new seed funded startups in 2025 were building for the world from the outset, and this too is happening across sectors.
  • The availability of venture capital has increased and public markets are open to startup IPOs. Venture funding has grown sharply over the past decade. There is no dearth of capital today for good ideas. Moreover, startup IPOs, which were once a rarity have become routine. That gives investors a clear way to exit, which brings more capital back into the ecosystem.
  • The government is an enabler. Regulatory reforms have made it easier to start and grow a business. Digital public infrastructure like Aadhaar and UPI has given startups a solid foundation to grow and scale. The government has also proactively opened up sectors such as space and defence to private players. The space sector, in particular, has seen tremendous growth: In just six years since opening it to private players (in 2020), India boasts over 400 space-tech startups; the US, in comparison, has 900 space startups but has been open to private players for decades.
What matters is not any one of these forces in isolation. What matters is that, for the first time in India’s history, all five are converging at the same time.

That is what makes this moment different.

The book is equally candid about the speedbumps ahead. Chief among them is research and development, which the authors call ‘quite possibly our biggest Achilles heel’. India spends just 0.65 per cent of its GDP on R&D, compared with 2.6 per cent for China and 3.5 per cent for the US. According to the authors, India must raise this to at least 3 per cent to compete. The authors describe the Anusandhan National Research Foundation (ANRF) and the ₹1 lakh crore Research Development and Innovation (RDI) Fund as ‘bold, promising initiatives’.

Speaking about the book, Rajan Anandan, Managing Director, Peak XV Partners, said, "The time is NOW for Indian innovation and entrepreneurship. The building blocks are in place, and we are ready for lift-off. The next two decades will see an unprecedented rise in Indian innovation - not just across every industry in India, but also as Indian companies build for the world."

Saurabh Srivastava, co-founder of NASSCOM, TiE and the Indian Angel Network, said, "The core argument of our book is that Viksit Bharat is possible by 2047, and it will change the trajectory of India if it happens. There’s no reason today why it should not happen. Our entrepreneurs, who create the economy, are on a roll." 

The Lift-Off Nation is published by Juggernaut Books, is now available in bookstores across India and online on Amazon and Flipkart.

About the Authors

Rajan Anandan is Managing Director at Peak XV Partners, where he focuses on AI and deep-tech investments and leads Surge, the firm’s seed-stage investing platform. He previously headed Google India and Southeast Asia, and led Microsoft and Dell in India. Before becoming a full-time investor, he backed more than 200 startups as an angel investor. He is a member of the National Startup Advisory Council.

**Saurabh Srivastava** is one of India’s leading entrepreneurs, investors and institution-builders. He co-founded NASSCOM, the IVCA, TiE and the Indian Angel Network, India’s first angel investor group, and is a former Chairman of NASSCOM. He chairs TDB’s investment committee for the RDI Fund. He was awarded the Padma Shri, India’s fourth-highest civilian honour, in 2016.

US Freezes Microsoft, Adobe & Indian IT Giants from Green Card Program in Sweeping Visa Crackdown

US Freezes Microsoft, Adobe & Indian IT Giants from Green Card Program in Sweeping Visa Crackdown

The US Department of Labor has announced suspension of Microsoft, Adobe, and six major IT firms—including Infosys, TCS, Wipro, HCL, Capgemini, and Cognizant—from the Permanent Labor Certification (PERM) program, citing alleged visa fraud and abuse. This halts new and pending green card sponsorships for foreign workers, a move that could significantly impact Indian IT professionals and outsourcing firms.

On October 8, 2026, the U.S. Department of Labor, alongside Vice President JD Vance and Labor Secretary Keith Sonderling, formally declared the suspension of Microsoft, Adobe, Infosys, TCS, Wipro, HCL Technologies, Capgemini, and Cognizant from the PERM green card certification program. The announcement was made during a press briefing in Washington, D.C., citing ongoing investigations into visa fraud and misuse of the H‑1B system.

Indian professionals in the US face heightened uncertainty after the suspension of Microsoft, Adobe, and six IT firms from the PERM program. While existing H‑1B visas remain valid, thousands of workers awaiting green card sponsorships now risk indefinite delays, especially those nearing the six‑year H‑1B limit

Workers whose employers are suspended cannot proceed with new or pending PERM filings, blocking their path to permanent residency. Current H‑1B visas are unaffected, but those close to the six‑year cap face pressure to find alternative immigration routes.

Many Indian professionals who planned long‑term settlement in the US must now reassess timelines and options. Notably, delays in green card processing affect dependents’ visa security, education, and healthcare access.

TCS has downplayed impact, noting its PERM filings were in “single digits” over the past two years, and reaffirmed hiring 15,000 US jobs through local recruitment.

India’s IT industry body NASSCOM has stressed that immigration and skilled talent mobility should be treated separately, highlighting reduced dependence on H‑1B visas and increased local hiring.

Key Facts

  • Announcement Date: October 8, 2026
  • Authority: US Labor Secretary Keith Sonderling, backed by VP JD Vance and Attorney General Todd Blanche
  • Companies Suspended: Microsoft, Adobe, Infosys, TCS, Wipro, HCL Technologies, Capgemini, Cognizant
  • Scope: Suspension applies to new and pending PERM applications. Existing approvals remain valid
  • Reason: Alleged misuse of the H-1B visa program and green card sponsorships

What is PERM?

PERM (Permanent Labor Certification) is the first step for employer-sponsored green cards.
  • Employers must prove no qualified US workers are available
  • Hiring foreign workers won’t harm wages or conditions of American workers

Impact on Indian IT & Workers

Impact AreaDetails
Indian IT FirmsInfosys, TCS, Wipro, HCL, and Cognizant face disruption in sponsoring employees for US permanent residency
Microsoft & AdobeCriticized for layoffs while filing thousands of H-1B and PERM applications
Indian ProfessionalsThousands awaiting green card filings may face indefinite delays, increasing uncertainty for long-term US careers
US WorkforceAdministration claims this protects American jobs, especially after 131,000 tech layoffs in 2026

Political & Regulatory Context

  • Vice President JD Vance accused Microsoft of “abusing the system,” citing 6,000 layoffs in 2025 while filing 6,300 H-1B visas and nearly 3,000 green cards
  • Trump Administration’s “Project Firewall” is intensifying scrutiny of H-1B and PERM programs, with over 200 active investigations
  • The Department of Labor claims to have uncovered $22 billion worth of visa fraud

Risks & Challenges

  • Talent Retention: Indian IT firms may struggle to retain skilled workers in the US
  • Project Delivery: Long-term contracts could face disruption due to workforce instability
  • Legal Exposure: Companies risk reputational damage and penalties if fraud is proven
  • Worker Anxiety: Thousands of Indian professionals face uncertainty about their immigration status

What’s Next?

  • No timeline announced for lifting suspensions
  • Existing approvals remain valid, but new sponsorships are frozen
  • Indian IT industry bodies (like Nasscom) are lobbying to distinguish talent mobility from immigration fraud

MoneyTruVa Gets Backing from Sunil Singhania (in personal capacity) and Raj Shamani to Build a Structured Financial Information Platform for Indian Investors

MoneyTruVa Gets Backing from Sunil Singhania (in personal capacity) and Raj Shamani to Build a Structured Financial Information Platform for Indian Investors

Shareholders include Amar K. Ambani, Ajay Thakur, Kirtan Shah, Sonia Shenoy Platform to be unveiled in Mumbai on 22 October for pre-registration


MoneyTruVa, a structured financial information platform for Indian investors, has raised an undisclosed amount in a seed round.

MoneyTruVa brings together financial information that is scattered across exchange filings, media and social platforms, and presents it in a structured format with context. It aims to bring together investors and stakeholders across the financial ecosystem, enabling them to discover information, understand it and make better-informed decisions. The platform is designed to bring greater clarity to an information landscape that is often fragmented across multiple sources and formats.

India's investor base has crossed 13 crore unique accounts, supported by progressive regulation, robust market infrastructure, exchanges, intermediaries and listed companies. As participation continues to broaden and deepen across the country, one of the most important enablers for the next phase of growth will be access to structured financial information that empowers investors to make smarter decisions. MoneyTruVa aims to address this need by transforming fragmented financial information into a structured, accessible and decision-oriented experience for investors.

The platform will be unveiled at an invite-only event in Mumbai on 22 October 2026 and will be open for public pre-registration.

MoneyTruVa's shareholder base includes prominent names from India's financial ecosystem, as well as leading business and finance educators and thought leaders, who share the company's vision of democratising financial information and knowledge for investors across India.

Shareholders from India's financial ecosystem include Sunil Singhania (lead investor, investing in his personal capacity), along with Abhijit Bhave – Former CEO, Equirus Wealth; Ajay Thakur – CEO TGIsmE, Former Head of BSE SME; Amar K. Ambani – Executive Director, Yes Securities; Dhiren Shah – MD, Moneybee Securities; Jayesh Parmar – Managing Partner, Mudita Growth Partner; Kirtan Shah – Founder & CEO, Truvanta Wealth; Kunal Bothra – Market Expert, SEBI Registered Research Analyst, Trainer, Mentor; Rakesh Rathod – Evangelist, smallcase / CASE Platforms; Vikram Kotak – Investor, Former CIO Birla Sun Life Insurance; Vinit Jain – Co-founder, Promore AIF and Broking and others.

The shareholder base also includes leading business and finance educators, entrepreneurs and thought leaders, including Raj Shamani – Entrepreneur, Investor, Author and Founder – Figuring Out Media; Anant Ladha – Creator; Avanne Dubash – Former Anchor ET Now; Dr. Sanjay Arora – Brand Consultant, Author, Founder - Shells Advertising; Karunya Puligadda – Co-founder Cogent Media Labs, Former Anchor & Research Analyst ET Now, News Editor Moneycontrol; Kushal Lodha – Entrepreneur, Finance Podcaster; Mubina Kapasi - Co-founder Cogent Media Labs, Former Anchor & Research Analyst - ET Now; Rahul Malodia – Founder Malodia Business Coaching; Sanjay Kathuria – Financial Educator, Entrepreneur; Sonia Shenoy – Independent Business Journalist, Podcaster, former Anchor CNBC and others.

All shareholders named above have invested in their personal capacity; their investment does not represent an endorsement by, or an association with, any organisation with which they are connected.

Jigish Sonagara, Founder and CEO of MoneyTruVa, said, “We are deeply grateful for the trust and support of some of the most respected names across India's financial and business ecosystem.

Our vision is to democratise access to financial information and knowledge and make it more useful and accessible to every investor, irrespective of their investment journey, location, size of investment or level of knowledge of financial markets. We believe better access to relevant information can play an important role in deepening participation in India's financial markets and contributing to greater financial inclusion. This is just the beginning, and we are excited about the journey ahead.”

About MoneyTruVa

MoneyTruVa
MoneyTruVa is building India's first Structured Financial Information Platform for Smarter Decisions, designed to bring financial information together in a structured and accessible format to help investors discover, understand and make better-informed decisions.

Founded by Jigish Sonagara, who has led technology initiatives for financial market institutions including MCX, IEX and MSE, and has been involved in the conceptualisation of technology platforms spanning exchange systems, risk management, surveillance, market infrastructure and MSME finance. The company also has Sameer Vasani on its Board. Sameer is a TOGAF-certified enterprise architect with extensive expertise in enterprise technology architecture, trading systems and large-scale digital infrastructure.

MoneyTruVa's vision is to democratise access to financial information and knowledge and make it more structured, accessible and useful for investors across India. 

Citi Helps Indian Firms Raise $16bn YTD, Eyes Continued Deal Momentum

Citi Helps Indian Firms Raise $16bn YTD, Eyes Continued Deal Momentum

Bank has doubled IB revenues YTD, including market share of 28% in M&A [Dealogic data]

Citi's Investment Banking business has supported Indian companies in completing dozens of landmark transactions across mergers and acquisitions (M&A), equity capital markets, and debt capital markets, securing the leading market share in India.

Year to date Citi is ranked top for Investment Banking revenues in data provider Dealogic's League Table, with a market share of 7% with revenues up close to 100% year on year according to Dealogic data. (Reported Dealogic revenues up from US$29m to US$52m).

Indian companies have continued to expand their international presence and raise cost effective financing to support their growth ambitions, largely across the tech space.

Citi has been at the heart of this trend, leveraging its leading global network to help Indian companies access global capital markets and advise on transformational strategic transactions.

Year to date Citi has raised close to US$16bn for local clients, including landmark financings and has advised on US$36bn of M&A involving key Indian companies. The bank is currently top in Dealogic's M&A league table with a market share of 28%.

Citi remains committed to helping Indian companies strengthen their international competitiveness amid a complex and evolving business landscape.

"Citi is growing with our clients in India as we deliver the full power of the franchise to clients both locally and across Citi's global network. India is a key market for Citi globally, home to a range of world class companies who we are supporting both at home and abroad. We have a very strong pipeline of business ahead and we are excited by the growth opportunity with our clients," said Rahul Saraf, India Head of Investment Banking, Citi.

India IB Revenue by Bank (YTD)

2026 YTD2025 YTD
RankBankNet Revenue USD (m)% ShareRankBankNet Revenue USD (m)% Share
1Citi5271JPMorgan668
2JPMorgan4362Morgan Stanley618
3Kotak Investment Bank3553Kotak Investment Bank324
4HSBC3554Jefferies LLC304
5Jefferies LLC3045Citi294
6Axis Capital Ltd2946HSBC284
7ICICI Securities Ltd2847JM Financial Ltd263
8IIFL Capital Services Ltd2738Standard Chartered Bank233
9Standard Chartered Bank2739Axis Capital Ltd223
10JM Financial Ltd26310ICICI Securities Ltd213
Subtotal33243Subtotal33943
Total780100Total796100

[Source: Dealogic]

India M&A Volume by Advisor ex Fairness Opinion (2026 YTD)

RankAll Advisor ex Fairness Opinion (Parent)Deal Value at Announcement USD (m)No.% Share
1Citi36,8101028
2Arpwood Capital Pvt Ltd25,048919
3JPMorgan17,552613
4Goldman Sachs15,052412
5Jefferies LLC14,714411
6Morgan Stanley14,548811
7Rothschild & Co10,84558
8Barclays4,96564
9Ernst & Young4,046343
10Kotak Investment Bank3,532133
Subtotal69,6918253
Total130,5711,019100

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