Sonata Software Ltd. — Capital/Financing Update 2019

Mar 25, 2019

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23[rd] March, 2019

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: neaps@nse.co.in Stock Code - SONATSOFTW

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: listing.centre@bseindia.com Stock Code - 532221

Dear Sir/Madam,

Sub: Intimation under Regulation 30(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

With reference to the captioned subject, we would like to inform you that Sonata Software North America (SSNA) wholly-owned subsidiary has entered into an agreement with Retail 10x, Inc. (hereinafter referred to as “R10X”) on 22[nd] March, 2019 to acquire 10% stake in R10X, a US based Company.

The information required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated 9[th] September, 2015 and related Press Release are enclosed with this letter.

We request you to kindly take the same on record.

Thanking you,

Yours faithfully,

For Sonata Software Limited

Digitally signed by RASHMI RASHMI VIVEK SHIRKE VIVEK SHIRKE Date: 2019.03.23 12:22:05 +05'30'

Rashmi Shirke

Assistant Company Secretary and Compliance Officer

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Annexure I

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		Annexure I
Sr. No.	Particulars in respect of the Event	Details/Information of the Event
1.	Name of the target entity, details in brief such as size, turnover etc.	Retail 10x, Inc. (“R10X”) is a Silicon Valley based Company. R10x, specializes in providing retailer data platforms, products and services.
2.	Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at “arm’s length”	No
3.	Industry to which the entity being acquired belongs.	Information Technology Services
4.	Objects and effects of acquisition.	The investment will help Sonata align with verticals of choice Retail, Distribution, CPG and help in the Platformation strategyof the Company.
5.	Brief details of any governmental or regulatory approvals required for the acquisition;	None
6.	Indicative time period for completion of the acquisition;	1stApril, 2019
7.	Nature of consideration	Cash
8.	Cost of acquisition or the price at which the shares are acquired.	Investment of $0.8M in cash for a 10% stake
9.	Percentage of shareholding / control acquired and/or number of shares acquired.	10%
10.	Brief background about the entity acquired.	R10x is an AI based integrated Platform for CPG’s, Retailers & Distributors.

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Sonata Software makes Strategic Investment in Retail10X, a Silicon Valley based Retail AI software-as-service Platform Company

Bangalore, March 23[rd] 2019: Sonata Software today announced that it has made a strategic investment in Retail10x, a Palo Alto, California Headquartered Retail AI software-as-service platform company.

R10x is a Retail AI software-as-service platform for retailers, distributors and consumer packaged goods companies that helps them in:

• Improving Operational Effectiveness through advanced demand sensing, shrink reduction inventory optimization and merchandizing capabilities.

• Real-Time Supply chain Collaboration .

• Building Customer Loyalty by helping connect with their customers in a personalized, relevant and timely manner during their shopping experience.

The platform leverages advanced AI and ML capabilities to deliver actionable field-level recommendations. Retail10x team has deep industry experience having worked for some of the leading organizations like Apple, Walmart, Coke, Heineken, Moet Hennessy, SC Johnson and IRI.

Sonata software has been focused on being a Digital Transformation Partner of choice for customers in Retail, Distribution, Manufacturing, and Travel industries with their unique Platformation[TM] methodology, end-to-end digital platforms. This investment is an extension of its endeavour of Digital transformation for the retail, distribution and CPG companies by providing them a real-time integrated data rich platform. As a result of the investment Sonata gets exclusive rights, worldwide, to implement and service the R10x platform and market the R10x platform under its own brands.

Commenting on the partnership, Srikar Reddy, MD & CEO, Sonata Software said, “Our strategic business partnership with Retail10x brings great value to the customers in our focused vertical of retail, distribution and CPG by providing them with a platform that leverages the latest in AI, ML and deep learning technologies in accelerating their digital transformation journey. This partnership would further strengthen our singular focus of becoming Digital transformation Partner of choice in these verticals.”

Prasad K R - Founder and CEO of R10x commented, “Sonata’s world-class expertise in digital retail and distribution supply chains will give R10x market leading capabilities in bringing a powerful Retail AI platform to retailers. Distributors and CPG’s. We are excited to build this partnership as Sonata’s worldwide footprint will help accelerate our growth in US and help R10x enter new markets helping customers realize their Digital transformation goals.”

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Click here to know About Sonata Software

For more information, press only:

Nandita Venkatesh

Sonata Software Limited CIN- L72200MH1994PLC082110 A.P.S. Trust Building, Bull Temple Road, N.R. Colony Bangalore 560019, India Tel: +91 80 67781999 Nandita.v@sonata-software.com

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