To broaden the company’s offerings in newer areas of technology, Infosys plans to invest a quarter of its $500 million (Rs 3,000 crore) fund in startups in Silicon Valley, Israel and India. The company has had discussions with about 2 dozen VC firms including Andreessen Horowitz, for such investments. It is looking at around a dozen companies to invest in. Also, it is on the verge of investing in a company that makes air quality sensors in the area of Internet of Things.
As per an ET report, the plan is to back to startups and entrepreneurs with ideas that align with the company. Last month, the company made its first startup investment of $15 million in an unnamed firm related to NASDAQ-listed DreamWorks Animation.
Also, in February this year, the firm announced a definitive agreement to fully acquire Panaya, Inc., a US-based automation technology startup for large scale enterprise software management, in cash, for an enterprise value of $200 million. The transaction is expected to close before March 31, 2015. In Novemebr 2014, Infosys Co-Founders had launched a new business incubator, Axilor Ventures to invest upto $1 million in Indian Startups.
This is not the first time when an Indian technology firm has to set up a separate arm or fund to invest in startups. Wipro also has a $100 million corporate venture arm to invest in startups, especially in robotics and artificial intelligence niche. TCS is associated with an accelerator called Startupbootcamp. Pune-based IT company, Persistent Systems had launched a $10 million venture capital fund to invest in very early stage startups.