Indian IT’s core competencies and strengths have attracted significant investments from major countries. The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows worth US$ 22.83 billion between April 2000 and December 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain, artificial intelligence to clients using innovation hubs, research and development centres, in order to create differentiated offerings.
Some of the major developments in the Indian IT and ITeS sector are as follows:
- Bengaluru-based fintech company ZestMoney, owned by Camden Town Technologies Pvt. Ltd, has raised US$ 6.5 million in a series A round of funding led by Naspers-owned PayU; and will invest the funds in technology and product development.
- Google plans to set up its first data centre in India in the city of Mumbai by 2017, to improve its services to local customers wanting to host their applications on the internet, and to compete effectively with the likes of Amazon and Microsoft.
- Sagoon Inc, a social network and e-commerce start-up, has filed mini-initial public offering (IPO) papers with the US Securities and Exchange Commission (SEC), to raise around US$ 20 million, which will be used to set up a campus in India, expand its team in India, the US and Nepal, and support marketing and branding and other general purposes.
- SAP SE, in partnership with the Associated Chambers of Commerce of India (ASSOCHAM), has rolled out a knowledge sharing resource centre which will serve as a one-stop portal for businesses looking to adopt or migrate to technology that will make them future ready for the biggest taxation reform of goods and services tax (GST).
- Freshdesk, one of first companies from India to offer Software-as-a-Service (SaaS) to global companies, has raised US$ 55 million in the latest round of funding led by Sequoia Capital India and existing investor Accel Partners, estimating to value the company at US$ 700 million.
- Warburg Pincus LLC, the US-based private equity firm, plans to invest around US$ 75 million in series C round of funding to buy a significant stake in Capital Float, an online credit platform.
- Helpshift Inc, which makes customer support software for mobile apps, announced raising US$ 2 million from Cisco Investments, in addition to working with Cisco to integrate its in-app customer support with Cisco’s contact centre solutions.
- Knowlarity Communications Pvt Ltd, a cloud telephony provider, has announced raising US$ 20 million from multiple investors such as Dubai-based private equity investor Delta Partners, existing investors Sequoia Capital Funds and Mayfield Fund, apart from venture-debt from Blacksoil and Trifecta Capital.
- Flipkart, India’s largest e-commerce marketplace, has re-entered the private label business by launching Smart Buy, the first of two new private labels, with a view to boost earnings and fill gaps in its product selection.
- Fitpass, a Delhi-based revolutionary app which offers access to gyms and health clubs membership, has raised US$ 1 million in seed funding from investors in Mumbai, Delhi, and Bengaluru.
- Apple’s supplier and assembler, Taiwan-based Winstron, will set up an iPhone assembly facility in Peenya, Bengaluru’s industrial hub, thus making India the third country across the world to have an assembly unit for Apple’s iPhone.
- Kratikal Tech Pvt Ltd, a cyber-security start-up, has raised around US$ 500,000 in seed round of funding led by Mr Amajit Gupta, former director of Microsoft India, which will be used for product development and building training modules.
- International Finance Corporation (IFC) plans to invest US$ 10 million as equity in Bengaluru-based Zinka Logistics Pvt Ltd, which provides a technology platform called Blackbuck for long-haul trucking market in India, estimated at US$ 70 billion.
- Paytm’s online marketplace unit raised US$ 200 million in a funding round led by a US$ 177 million investment to be made by Alibaba Group Holding Ltd, and balance by SAIF Partners.
- Intel Corporation plans to invest in Digital India related solutions such as India stack, Unique Identification (UID), e-government 2.0 and other government initiatives, and scale up operations of its data centre group (DCG), as per Mr Prakash Mallya, Director DCG, Asia for Intel Corporation.
- Reliance Industries Ltd (RIL) plans to set up entrepreneurship hubs in key cities and towns, and a Rs 5,000 crore (US$ 748 million) fund, under the name of Jio Digital India Startup Fund, to invest in technology based startups.
- Gurgaon-based digital wallet start-up MobiKwik, which is owned and operated by One MobiKwik Systems Private Limited, has raised US$ 40 million from Nasdaq-listed firm Net1, a South African payments technology company.
- Orange Business Services, the business services arm of Orange Group, has launched a state data centre for Himachal Pradesh government, which will be the first data centre in India to be designed using ‘green’ data centre concepts that minimise power requirements and increase power utilisation efficiency.
- PurpleTalk Inc, a US based mobile solutions company, has invested US$ 1 million in Nukkad Shops, a Hyderabad based uber-local commerce platform that helps neighbourhood retail stores take their businesses online through a mobile app.
- KartRocket, a Delhi based e-commerce enabler has completed its US$ 8 million funding round by raising US$ 2 million from a Japanese investor, which will be used to enhance Kraftly, a mobile-first online-to-offline marketplace targeting small sellers, individuals and home-based entrepreneurs in India in product categories such as apparel and accessories.
- Xpressbees, an e-commerce logistics firm operated by Busybees Logistics Solutions Private Limited, has raised US$ 12.5 million in a Series A funding, led by its existing investors SAIF Partners, IDG Ventures, Vertex Ventures and Valiant Capital, which will be used to strengthen technology initiatives and processes of the firm.
- Housejoy, an online home services provider, has raised Rs 150 crore (US$ 22 million) in a Series B round of funding led by Amazon, and which also includes new investors such as Vertex Ventures, Qualcomm and Ru-Net Technology Partners.
- Nasscom Foundation, a non-profit organisation which is a part of Nasscom, has partnered with SAP India to establish 25 National Digital Literacy Mission (NDLM) centres in 12 cities across India, as a part of Government of India’s Digital India initiative.
Credit : IBEF
