Mumbai: In one of the largest investments in a start-up, Bangalore-based Information Technology (IT) solutions and services firm Happiest Minds Technologies Pvt. Ltd has raised $45 million from Canaan Partners, Intel Capital and the company’s founders, including Ashok Soota.
Soota, co-founder and former chairman of software company MindTree Ltd, started Happiest Minds in August. The company intends to utilize the money raised for expanding globally, including hiring employees, setting up infrastructure and intensifying sales and marketing efforts.
Ashok Soota, founder, Happiest Minds. File photo
“Enterprises are witnessing spiralling technological and security challenges,” said Sudheer Kuppam, managing director, Intel Capital, Asia-Pacific region, in a statement. “Happiest Minds’ cloud, mobility, and security solution architectures can accelerate market adoption of such disruptive technologies, with attendant benefits for the vendor ecosystem.” In the Indian IT/ITes (information technology enabled services) segment, deals are falling though ticket sizes are on the rise. So far this year, the segment has seen 11 deals worth $313 million, compared with 20 transactions worth $175 million a year ago, according to VCCEdge, which tracks venture capital and private equity transactions.
According to Deepak Srinath, director of Bangalore-based boutique investment bank Viedea Capital Advisors, no other start-up in the same space would have been able to raise an investment of this kind, said Srinath. “It’s a VC mindset, they like successful entrepreneurs for their experience. Serial entrepreneurs are preferred for deals.”