Persistent Systems has acquired Pune-based Arrka Infosec for Rs 14.4 crore, with the deal expected to close within four to six weeks. Upon completion, Persistent will hold a 100% stake in Arrka, a Pune-based company specialising in data privacy management and AI governance.
Arrka’s platform helps organisations manage data privacy risks and comply with multi-jurisdictional legal and regulatory requirements in an integrated fashion.
Sandeep Kalra, CEO and executive director of Persistent Systems said: “As data privacy, ethical AI and AI governance become critical priorities in today’s digital landscape, this acquisition strengthens our ability to support our customers’ AI journeys more effectively,” Kalra said. He added that by incorporating Arrka’s expertise, Persistent will be better positioned to offer comprehensive, AI-driven solutions that protect sensitive data and ensure the ethical and compliant use of AI technologies. According to Kalra, the move significantly advances Persistent’s AI-led, platform-driven services, enhancing its ability to deliver comprehensive solutions in digital governance, including data privacy, AI governance and cybersecurity.
Arrka’s co-founder, Shivangi Nadkarni, and her team will join Persistent as part of the acquisition. “The acquisition by Persistent catapults Arrka onto the global stage,” Nadkarni said. She noted that this partnership would allow Arrka to transition from a boutique business with select long-term clients in India to expanding into global markets and rapidly deepening their expertise in digital governance.
With AI adoption on the rise, managing digital governance, particularly in data privacy and responsible AI, has become a priority for enterprises across industries. Persistent is addressing these opportunities through strategic investments in innovative platforms like SASVA—an in-house solution utilising both generative and deterministic AI—and acquisitions such as Starfish Associates. The integration of Arrka is seen as a key factor in scaling Persistent’s AI practice to meet the growing demand for digital governance. By leveraging Arrka’s data privacy expertise, Persistent aims to help businesses enhance and mature their compliance capabilities with evolving privacy laws and regulations.
