Persistent Strengthens Data Privacy with INR 14.4 Crore Acquisition of Arrka The acquisition enhances Persistent's AI-led, platform-driven services and strengthens its ability to provide comprehensive offerings in digital governance, including data privacy, AI governance, and cybersecurity, among others.

By Ayushman Baruah

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Persistent Systems

Persistent Systems, a global player in digital engineering, said it will acquire Pune-based data privacy firm Arrka for INR 14.4 crore. The acquisition is expected to be completed within the next 4-6 weeks.

The amount includes an upfront payment of INR 10.3 crore subject to customary adjustments for debt and cash on closing. Founders will be eligible for a maximum cumulative earnout of INR 4.1 crore over the next two years. This amount is contingent on achievement of certain performance thresholds.

"This strategic acquisition significantly enhances Persistent's AI-led, platform-driven services and strengthens its ability to provide comprehensive offerings in digital governance, including data privacy, AI governance, and cybersecurity, among others. With Arrka's expertise, Persistent will help clients accelerate their transformation journeys while ensuring ethical, responsible, and compliant AI," the company said in a statement.

Founded in 2012, Arrka provides data privacy consultancy services and it clocked INR 2.9 crore in revenue during FY24.

With the widespread adoption of AI, implementing and managing digital governance in general and data privacy and responsible AI are taking center stage for enterprises across industries. Persistent is addressing the opportunities in AI through strategic investments in innovative platforms like SASVA, an in-house cutting-edge platform using generative and deterministic AI, as well as through tuck-in acquisitions such as that of Starfish Associates in July to strengthen its position in AI-powered Contact Center and Unified Communications.

The integration of Arrka is expected to be a critical component in scaling Persistent's AI practice and addressing the rising demand for digital governance. It is a key to the Company's strategy to deliver responsible, ethical, and comprehensive platform-driven digital solutions.
Arrka's Data Privacy Management platform enables organizations to manage their data privacy risks and comply with multi-jurisdictional legal and regulatory requirements in an integrated manner. Persistent will integrate and significantly broaden Arrka's offerings to establish deep capabilities across the digital governance and trust domain.

"Arrka's acquisition perfectly aligns with our vision to deliver AI-driven services that fuel innovation and ensure data privacy, ethics, and compliance at every stage. By integrating Arrka's expertise with our AI-led, platform-driven services strategy, we are empowering businesses to innovate responsibly while managing risk and compliance more effectively. Their mature frameworks and Data Privacy Management platform provide a scalable foundation to ensure this new capability is platform-driven and embeds governance from the outset, which is now critical for successful AI implementations," Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent.

Commenting on the relevance of the acquisition, Chirag Mehta, Vice President and Principal Analyst, Constellation Research said, "As customers accelerate their adoption of AI, the urgency to address data privacy and compliance challenges has never been greater. Persistent's acquisition of Arrka strengthens its AI-led, platform-first approach, empowering customers to confidently pursue their business goals while tackling these critical security concerns head-on."

Ayushman Baruah

Entrepreneur Staff

Regional Bureau Head

Ayushman Baruah is the Regional Bureau Head at Entrepreneur India. With over 15 years of experience in technology journalism, Ayushman writes on the intersection of business and technology. He takes special interest in areas like the artificial intelligence (AI) and global capability centres (GCCs). He is also the recipient of the 15th Annual PoleStar Awards in jury's category for excellence in technology journalism.     
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

37% of Employers Would Rather Hire a Robot or AI Than a Recent Grad: 'Theory Alone Is No Longer Enough'

Three out of 10 HR leaders would rather leave a position unfilled than hire a recent graduate.

Money & Finance

Startup Founders Need to Advocate For Their Own Compensation — Here's How to Do It Right

Ensuring fair compensation as a founder or CEO is crucial to staying motivated and building a successful company. Here's how to strategically handle the conversation and get the pay that reflects your worth.

Technology

Indian GCCs to Add up to 4.5 Lakh New Jobs this Year, and 1 Mn Jobs by 2030: NLB Services

Signalling commitment to future-ready workforces and equipping youth for next-gen innovation, 42 per cent of GCCs are likely to bolster their workforce with a significant 50 per cent surge by 2030

News and Trends

Adar Poonawalla Acquires 20% Stake in AstaGuru to Transform Luxury Auction Space

The collaboration will drive growth across various verticals and categories, leveraging research-driven strategies and AI-powered digital enhancements to elevate user experiences.

Business News

Walmart Is Laying Off Hundreds, Relocating Others as the Company Closes a U.S. Office

Walmart is giving some employees at least a month to decide if they want to relocate.