Sify forming $22.7M startup fund; to focus on cloud, security and managed services
NASDAQ-listed Indian internet and IT services firm Sify Technologies Ltd has announced that it will 'explore avenues to invest in or partner with technology startups focusing on cloud, security and managed services in India'. The company claims to have already gathered Rs 30 crore capital from its promoters, with plans to pull in an additional Rs 120 crore. So, it is fair to assume Sify is launching an Rs 150 crore ($22.7 million) fund.
These investments, or partnerships, will be particularly directed at companies with synergies to Sify's current business lines. It could not be immediately ascertained when the company will go live with the fund and what its investment strategies will be. The company also mentioned that its board has approved the execution of an amendment to the subscription agreement, removing the current September 2013 deadline to call the balance of Rs 120 crore, leaving such funds available for draw by the board at such time as it determines the funds are needed.
Chennai-based Sify is a leading provider of integrated ICT solutions and services. It offers a comprehensive range of products delivered over a common telecom data network infrastructure reaching more than 1,100 cities and towns in India. A significant part of the company's revenue comes from enterprise services, including telecom services, data center services, cloud and managed services, application services and telecom integration services.
In the quarter ended June 30, 2013, Sify had reported a 33 per cent increase in revenues. The revenue growth also pulled the firm out of the red and it reported a net profit of Rs 16.3 crore in the quarter, compared with a net loss of Rs 7.6 crore in the year-ago period.
In April this year, software major Infosys had announced that it is also planning to set up an innovation fund to the tune of $100 million, in order to focus on new ideas, products and platforms. The fund will not only focus on ideas coming from within the company, but will also be used to fund innovations coming from outside the organisation.