Wipro Ventures, the investment arm of Wipro Ltd, said it has raised its Fund II, of $150 million, which will invest in early to mid-stage companies building innovative enterprise software solutions in areas such as cybersecurity, application development, analytics, cloud infrastructure, test automation and artificial intelligence (AI).
Wipro Ventures launched its first fund of $100 million in 2015.
“…Our strategy has been to invest in promising enterprise software startups, establish strategic partnerships with them and bring their leading-edge solutions to our customers. By doing this, we differentiate our customer services, generate revenue for our portfolio companies and deliver strategic as well as financial returns to Wipro. Wipro Ventures’ Fund II demonstrates our continued commitment to this strategy,” Abidali Z Neemuchwala, chief executive officer and managing director, Wipro said in a statement.
In addition to making direct equity investments, Wipro Ventures has also invested in five early-stage enterprise-focused venture funds in Israel, New York, and Los Angeles.
To retain their dominance in the outsourcing space, IT vendors have been picking up stakes in small start-ups focused on disruptive technologies, including artificial intelligence and cloud computing, which they can then take to their clients. Infosys Ltd, for instance, had also launched the $500 million Infosys Innovation Fund a few years back.
Companies in the portfolio of Wipro Ventures, have seen successful exits, including Demisto, a cybersecurity company that was acquired by Palo Alto Networks, the firm said.
This article was first published on livemint.com