Sri Lanka’s Linear Squared is getting acquired by Algonomy

Bangalore-based AI company Algonomy recently announced its intent to acquire Sri Lanka’s Linear Squared. Algonomy, a company that specializes in algorithmic customer engagement for retailers and brands will be buying Linear Squared to expand its Artificial Intelligence and Machine Learning capabilities. Specifically, to build on its algorithmic merchandising portfolio with AI and ML-based demand planning and forecasting while augmenting its AI technology operations.

Banking on Sri Lankan talent

Founded in 2015, Linear Squared is a Sri Lankan tech company that operates in the AI and ML space serving businesses in multiple industries. It has two main products, Forecast Squared, a demand-forecast platform and Capacity Squared, an AI-driven sewing planning assistant for the apparel industry.

Through the acquisition, Algonomy will gain access to Linear Squared’s demand-forecast platform which would enable the company to expand services to its clientele of retailers that includes the likes of Walmart Canada, Flipkart, Pizza Hut, and Comcast. The deal will also bring Linear’s 40-member team of AI/ML engineers.

So far, the company has a presence in 18 locations around the world. This includes Research and Development centers located in Seattle, San Francisco, and Bangalore. Algonomy hopes to add Sri Lanka as the fourth location.

“The way we are looking at this is to have Sri Lanka as a center for specialized talent, especially in the areas of data science, analytics, and machine learning,” says Atul Jalan, Founder, and CEO at Algonomy. He further stated that the plan is to start adding 100 new local talent into Linear Squared within the next 12 months, followed by further expansion in the year after.

Talking about the announcement Linear Squared Cofounder Sankha Muthu Poruthotage mentions that “In the short term, it will improve time-to-market and business growth of our supply chain AI solutions for the CPG and grocery retail segments.” In terms of the long term, the expectation is for the company to become an integral part of Algonomy’s global operations Poruthotage adds.    Although the financial details haven’t been disclosed yet, it’s expected that the deal will be a full acquisition of the company by Algonomy.