When ChatGPT thrust AI into the global spotlight in late 2022, the timing looked ideal for Mad Street Den (MSD), a pioneering Chennai, India- and Silicon Valley-based computer vision startup backed by Sequoia Capital India and other India-based VCs. Almost on cue, the company announced a $30 million Series C funding in Jan 2023, raising almost as much as what it had in entire preceeding decade.
Two years later, as AI startup funding in the US gained massive momentum, it seemed natural to expect MSD to announce a large follow-on round. Instead came a news break in MoneyControl.com titled “Banking infra firm M2P to acquire Chennai-based AI startup Mad Street Den.” The story stated that M2P would acquire Mad Street Den’s intellectual property, contracts, and employees, with the deal valued at $10–15 million—funds that would primarily cover staff costs and other liabilities.
Now, the Mint has featured a “Long Story” titled “Mad Street Den built the future of AI. Then its founders walked away” authored by Pankaj Mishra based on interviews with MSD fouders Ashwini Asokan and Anand Chandrasekaran. The article, that incidentally places the “actual” acquisition value (paid by M2P) to be between $50-M and $100-M, cites a failed Series D fund raise (in December 2023) and volatility due to macroeconomic shifts affecting its core retail client base, as among MSD’s key challenges.
