Infosys expands new technology 'innovation fund' corpus five-fold to $500M
IT major Infosys Ltd has expanded the corpus of its global innovation fund to $500 million from the original $100 million to provide financing to startups and new ideas in the field of next generation technology, it said on Friday.
The firm said the capital will be used to invest into young companies world-wide innovating in areas such as artificial intelligence (AI), automation, Internet of Things or IoT, collaboration and design.
The IT giant had announced in April 2013 that it is planning to float a $100 million innovation fund for the startup community to focus on ideas, products and platforms. However, it has not publicly announced any investments as part of this fund yet.
The Bangalore-headquartered company has been focusing on IP-related products, platforms and solutions (PPS) business as part of its proposed 'Infosys 3.0' strategy, which is mainly aimed at widening the focus and looking to move higher in the value chain.
In August last year, Vikram Sikka took over as the first non-founder CEO of Infosys and laid down plans to transform the troubled tech company by working with the startup community, further strengthening intellectual property, products and platforms and also finding new software opportunities with clients.
In December, Sikka said that the IT firm is focusing on foraying into new segments and acquiring small innovative companies, working on "technologies of tomorrow" like AI, automation, IoT as well as collaboration and design technologies.
Meanwhile, the firm reported strong 12.7 per cent earnings growth in the quarter ended December 31, 2014, beating street estimates. This sent its share price flying around 5 per cent on the BSE in a strong Mumbai market on Friday.
Net profit rose 12.7 per cent to $522 million over the year ago period rising 2.2 per cent sequentially compared to Q2 ended September 30, 2014.
Its revenues rose to $ 2.2 billion last quarter up 2.6 per cent sequentially in constant currency and 0.8 per cent in actual currency terms; YoY growth in revenue was 5.6 per cent.
Infosys and its subsidiaries added 59 clients (gross) during the quarter.
It reported gross addition of 13,154 employees during the quarter and as of December 31, 2014 had 169,638 employees across the group. Infosys said it had the highest utilisation (excluding trainees) in 11 years and best volume growth in three years.
The firm also made 100 per cent variable payout for Q3 to its employees and had reportedly given iPhone 6 to thousands of its top performers as Christmas gift.