BENGALURU: India’s second largest software exporter Infosys has backed an Israel-based cloud computing startup called Cloudyn Ltd and picked up a minority stake for $4 million, at a time when chief executive Vishal Sikka is attempting to drive up growth in the company’s traditional outsourcing business, while also balancing futuristic bets on newer areas of technology.
Cloudyn, which monitors and optimizes cloud deployments of top Fortune 500 companies, also counts the likes of Israel-based Carmel Ventures and Titanium Investments as existing investors. According to CrunchBase, Cloudyn had raised roughly $16.5 million in three rounds, prior to the latest investment from Infosys.
The latest startup bet from Infosys also highlights Israel’s growing importance in the space of enterprise technology and India’s largest software firms are currently scrambling to ensure that they do not miss out on the current wave of early-stage next-generation technology ideas from the country.
Crosstown rival Wipro is also currently making moves in Israel, which is widely regarded as one of the world’s most fertile and innovative startup ecosystems. Infosys also acquired Israel-based Panaya for $200 million in 2015.
According to the Startup Genome, which ranks startup ecosystems across the world, Tel Aviv was ranked as the fifth best startup ecosystem in the world in 2015, coming in behind only the Silicon Valley, New York City, Los Angeles and Boston.
Over the past year and a half, Infosys has invested in a bunch of early-stage startups such as Trifacta, Waterline Data, WHOOP, CloudEndure, ANSR Consulting and Airviz Speck and spent at least $43 million from its $500-million venture fund in making these investments.
Bangalore-based Infosys is also currently in early-stage talks to invest anywhere between $10 million – $15 million in an Indian venture capital fund, Stellaris Venture Partners, which was launched by a team of venture capitalists, who are aiming for a final corpus of $100 million from both local and global investors, ET reported earlier on Wednesday.
In December 2015, it backed Silicon Valley-based early-stage venture capital firm Vertex Ventures.
Since Infosys CEO Vishal Sikka unveiled plans for startup investments by India’s second-largest software exporter in January 2015, the company has made eight direct startup investments, including the latest bet on Cloudyn.
Since Sikka took over as CEO of Infosys in August 2014, Infosys has also executed three major acquisitions — Panaya, Skava and Noah Consulting — spending close to $400 million on these three buys.: Global software major Infosys Ltd on Wednesday announced investing $4 million (Rs.27 crore) in Cloudyn, an Israeli corporation, providing software as a service (Saas) solutions for the management and optimization of hybrid, multi-cloud deployments.
“Cloudn enables enterprises to manage and optimise their hybrid, multi-cloud deployments. The solution provides visibility into usage, performance and cost, coupled with actionable recommendations for confident cloud growth,” said the IT major in a regulatory filing with stock exchange BSE in Mumbai.
The city-based company did not disclose the minority holding in percentage equivalent to the cash investment in the five-year-old Israeli firm, which has presence in the US.
“The investment is expected to be completed on August 15,” the filing noted.
Incidentally, Infosys investment in Cloudyn comes two days after its rival Wipro Enterprises’ infrastructure engineering division announced on August 1 buying an Israeli-based aerospace firm H.R. Givon for an undisclosed amount.