Silver lining amid funding winter: IT firms acquiring Indian startups, smaller firms
IT firms are increasingly snapping up Indian startups at a time when the startup ecosystem is amid a funding crunch. Several of the acquired firms are working in the segments of AI, semiconductor, data and analytics and spacetech among others.
Most of them are making acquisitions to strengthen their capabilities so that they do not miss out when technology spending, especially in discretionary spends, returns, say analysts. Big IT firms such as Accenture, Infosys and IBM along with many midcaps like Persistent, Cyient, Global Logic and others have recently acquired smaller Indian firms working in cutting-edge technologies.
This month, IBM acquired a Bengaluru-headquartered software-as-a-service (SaaS) startup Prescinto for an undisclosed amount. Later in the month Hyderabad IT engineering service provider Cyient acquired 27.3% in US based Indian startup Azimuth AI for $7.25 million. The acquisition will expand Cyient’s capabilities across the semiconductor industry.
Last month, another engineering service provider, Persistent Systems announced its intent to acquire Pune based data privacy management firm, Arrka, for Rs 14.4 crore. Last month Infosys also said that its plans to invest up to Rs 17 crore (approximately $2 million) in space-tech startup, GalaxEye Space Solutions, as part of Infosys Innovation Fund. The cash investment will involve Infosys picking up a minority stake, less than 20%, as part of the series A round to pick up equity and compulsory convertible preference shares.
In July, IT major
