Intel Capital invests $20m in Indian tech companies

It additionally invested in Financial Inclusion Network and Operations, a tech platform for online banking; What's On India, a TV programming guide; enStage, an electronic payment provider; and Duron Energy, a solar products maker. Intel Capital did not disclose the details of each investment. The commitment was made through its $250 million Intel Capital India Technology Fund, which is said to be approximately 80% deployed.

The investment comes five months after the venture capital firm invested $18 million in two Indian companies, including Sudhir Srivastava Robotic Surgery Centre (SSARSC), a provider of advanced robotic surgery procedures, marking its first investment in the country's healthcare segment.

While Intel Capital has been active in India's technology space, Asia Pacific Managing Director Sudheer Kumar Kuppam told media last week that the valuations of early-stage tech companies have reached "near-bubble" levels.

"It's crazy. I am not drawing parallels, but it feels like ‘99 in the US," Kuppam told Reuters. "This is not a good sign. Most of the time, we evaluate companies and we have to leave it at that stage as we feel valuations were too high."

The rapid growth is partially attributed to overcrowding in the software and technology sector, where entrepreneurs are generally more willing to take on third-party investment than family-owned firms in other industries. As a result, global VCs have intensified their focus on India, additionally hoping to see high returns from IPOs.

Intel Capital generally deploys $5 million per investment for minority stakes in companies.

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• Topics
• Venture
• Technology
• South Asia
• India
• Venture
• TMT
• Intel Capital