Bangalore: To expand its business offerings in newer areas of technology, India’s second largest software services exporting company Infosys’ Chief Executive Vishal Sikka is planning to allocate a quarter of its $500 million (Rs.3000 crore) fund for startups in Silicon Valley, Israel and India along with venture capital firms all over the world. He is seeking to differentiate Infosys from its adversary like Wipro and Cognizant, which are developing technology scene.
The company was in talks with about two dozen VC companies for making this investment, which is purely to bolster entrepreneurs and startups. Till now, no formal agreement has been created with any particular VC firm.
Infosys made its first venture of $15 million (Rs.90 crore) in startup last month. This startup firm is a U.S. based company which is into Dream Works Animation. Infosys is the only speculator for Dream Works as of now. There was a recent talk that Infosys may enter into the animation market.
In recent month, the firm acquired Panaya, Israel and U.S. based quality automation technology startup of about $200 million (Rs.1,200 crore) for large scale enterprise software management. On May 2014, the firm created Edgeverve Systems which focus on automation technology as a new subsidiary and in the same year November, a new business incubator, Axilor Ventures has been launched by Infosys Co-Founder to invest up to $1 million in Indian startups.
Infosys is not the only Indian technology company to setup a separate arm or fund to invest in startups. Crosstown rival Wipro has created a corpus of $100 million for investing in startups which mainly focus on artificial intelligence and robotics. Last year, Microsoft India has selected 16 startups to combine their seed funding in one place and Twitter has made its first investment in India startups.