Intel Boosts Indian Innovation with $250M Venture Fund

Online staff -- Electronic News, 12/5/2005

To help stimulate technological innovation in India and drive continued growth of the country’s information technology (IT) industry, Intel Corp. said today it has created a $250 million venture capital fund.

“The pace of technology innovation is accelerating. Through the Intel Capital India Technology Fund, Intel will help Indian companies drive technology adoption locally and identify new business opportunities globally,” Intel chairman Craig Barrett said in a statement.

Intel said it will invest in companies that can benefit from the rapid growth in the domestic IT market segment in India and provide local businesses with capital to help nurture important technologies and products developed for local use, as well as technology-oriented service companies that target overseas market segments using India’s resource base such as cellular communications, broadband applications and wireless technologies.

Intel made its first strategic investment India in 1998 and since then has invested in more than 40 Indian companies in seven cities, with several of these companies having since gone public or been acquired. Deccanet Designs, a communications design and software services company, and FutureSoft, a telecommunications product and services company were acquired by other firms last year. India Infoline.com Ltd., an online portal, and Sasken Communication Technologies Ltd., a telecommunications product and services company went public on the Indian stock market this year.

Finally, Intel has made Indian capital investments including NIIT, a global IT learning solutions company; Nipuna Services Ltd., a business process outsourcing provider; and Tejas Networks, a telecom products company for the Indian market segment.

Arvind Sodhani, president of Intel Capital concluded, “Intel Capital plays a critical role in Intel’s wide-ranging efforts to stimulate technological innovation and grow the IT industry in India. We anticipate that the establishment of the India Technology Fund will inspire even more innovative business models among Indian entrepreneurs, help accelerate technology adoption locally, and foster the development of innovative technologies with potential for global distribution.”