Infosys buys minority stake in Cloud Endure for $4 million1 min read . Updated: 09 Dec 2015, 10:41 PM IST
This is Infosys' fifth investment from its $500 million innovation fund
Bengaluru: Infosys Ltd made its fifth investment from its $500 million innovation fund when it paid $4 million to pick a minority stake in Cloud Endure Ltd, an Israeli-based start up which offers solutions to help large companies move applications to cloud and cloud-based Disaster Recovery software.
The aggressive approach of partnering with startups focused on disruptive technologies underscores Infosys chief executive Vishal Sikka’s so-called New and Renew strategy to reinvigorate India’s second largest software services company.
Infosys in a statement said that Cloud Endure offers “a highly differentiated solution in addressing a $15 billion software and services market that is of significant strategic importance to Infosys".
Cloud Endure, which was set up in 2013 and has about 40 employees, is estimated to have annual revenue of close to a $1 million.
Infosys said that it expects to close its investment by 11 December.
Globally, large companies across industries are looking to move their applications to the cloud, as it helps cut costs. Infosys, through its partnership with Cloud Endure, believes that it can help its large clients cut down “recovery or migration time from months to minutes", according to a senior executive, who asked not to be identified.
Interestingly, Infosys is using Cloud Endure’s services and is also one of the 40-odd customers of the startup, according to the executive.
Infosys has spent $22.4 million to pick stakes in four startups and also made an undisclosed investment in September to become a limited partner in Vertex Ventures, an Palo Alto-based venture capital firm.
It paid $1.4 million for a 5% stake in ANSR Consulting, a Bengaluru firm that helps global firms set up offshore captive centres in India; $15 million in a spin-off unit of Dreamworks Animation; and $2 million to pick a minority stake in Airviz, a personal air quality monitoring start-up from Carnegie Mellon University.
Additionally, Infosys has made three acquisitions since the start of the year, spending $390 million to buy automation technology provider Panaya, digital commerce firm Skava and Noah Consulting LLC.
Infosys said its investment allows it to have “a minority holding, not exceeding 20% of the outstanding share capital of the capital."
Israeli venture capital firm Magma Venture Partners is one of the investors in Cloud Endure.