Tech Mahindra is planning to invest into their three internally made startups. The company is talking to venture capitals, strategic partners, and equity players to raise external funds for their startups.
The three startups are – SARAL ROZGAR platform; Mobomoney which is digital payment service and Microgrid, a service business protocol. Tech Mahindra has announced the projects 18 months back and now it looks to take place.
When spoken to Jagadish Mitra, Chief Strategy and Marketing Officer at Tech Mahindra, he said “We are talking to a number of players for investments but in this environment, it is taking a little time. The fundraising may not happen this quarter or the next, but it will happen soon.”
Mr. Mithra also leads companies growth factories initiative which support the startups. He said, “Though the company is talking to venture capital, private equity, and strategic partners, we believed a strategic partner investment was more likely important.” He declined to name the firms which Tech-Mahindra contacted with.
Microgrid, the service backup business protocol manages to get the attention of Canadian state of Ontario. According to a report, the startup has already signed a memorandum-of-understanding with the Centre for Urban Energy, part of the Ryerson University, which is located in Toronto, Ontario.
Tech Mahindra has about $150 million to invest in internal and external startups. Infosys has a $500 million fund to invest in startups, while Wipro has a $100 million fund.
Tech Mahindra focuses in building the startups in-house, rather than other IT companies which invest periodically in their startups. Total 18 months are given for startup to run the operations and see if the idea has traction and can scale upwards. Then the CEO of the startup is given a term sheet where their stakes and Tech Mahindra’s stakes are spelled out. If the CEO sees an upside, the startup is give a spin-off and other funds are raised. Read more news.