Intel to continue India tech ventures

MUMBAI, INDIA: Intel Capital, Intel’s global investment organization, today said it will continue to support and invest in innovative and technology ventures in India.

“Intel Capital’s mission is to enhance Intel’s strategic objectives by making and managing financially attractive investments in the technology verticals. We want to develop market for Intel products in India,” said Sudheer Kumar Kuppam, Intel Capital’s managing director - India, Japan, ANZ & SE Asia.

He spoke to CIOL on the sidelines of announcement of Intel Capital’s $20 million investment in six Indian companies.

Intel Capital had set up a $250 million India Technology Fund back in 2005. The company has invested around 80 per cent of this fund which included the six new Indian technology firms getting investments in this year.

The remaining 20 per cent of that fund is expected to get exhausted by 2012-end. “Once the funds get exhausted, we will announce a second fund and will continue to encourage technology innovation and entrepreneurship in India,” Kuppam said.

On an average $4 million is invested per company. If the firm is in an early stage the investment is less. However, the fund is invested for 7-8 years for an early stage firm and for those in the later stage investment lasts for just 2-4 years period before exit.

In 2010, Intel Capital invested $327 million in 119 companies with approximately 44 per cent of funds invested outside the US and Canada. From 1991, the organization has invested over $10 billion in more than 1,440 companies in 51 countries.

During this period about 191 portfolio companies have gone public on various exchanges globally and 268 were acquired or participated in a merger. 

According to Kuppam, for Intel Capital - data center and cloud computing, education, smartTV and mobility, software and services and consumer Internet are the core areas of interests for investments. 

Banking on India’s growth, Kuppam stressed that India has a great profile - everything is upside with high PC penetration, Internet and mobility. “There are opportunities for investments but very few high quality deals happen here.”

“It's been a long time since any product innovation company has come from India,. However, the growth of infrastructure, 3G mobility and Internet broadband penetration will encourage investment in the Indian companies,” he noted.