Intel to Invest $178M in India; Cognizant to Buy TMG Health, VanityCask Bags Seed Funding & More
India’s third largest IT services provider Wipro Ltd has invested $809,690 (about Rs 5.21 crore) in Drivestream Inc to increase its stake in the US-based management and IT consulting firm
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Here is a list of deals that happened in Indian Startup Ecosystem today. Read a brief description about all of them:
1. World's leading chip maker Intel Corporation will invest $178 million to expand its R&D presence and build a new state-of-the-art design house in Bengaluru. This proposed facility that will be located at Intel’s 44-acre campus on Sarjapur Ring Road in Bengaluru, will be used for chip design and verification purposes. The additional capacity will also help Intel India consolidate its R&D operations to a large extent at the SRR campus.
2. Cognizant has agreed to buy a unit of Health Care Service Corporation, as part of an expansion of its strategic relationship with the company.
TMG Health is national provider of business process services to the Medicare Advantage, Medicare Part D and Managed Medicaid markets in the U.S., supporting 32 client plans and more than 4.3 million members in all 50 states.
After the acquisition, TMG Health will enter into a new, expanded multi-year service agreement to continue providing information technology, business process and other services to HCSC’s various operating units and subsidiaries. The deal is expected to close in the third quarter of 2017.
3. US-based product development outsourcing firm GlobalLogic expects to double the number of acquisitions in the next three years and is looking to buyout more than one Indian firm in its drive to become a $1-billion company by 2020, as reported by ET.
The product design company recently named Jonathan Rottenberg as SVP corporate affairs and mergers & acquisitions to spearhead key acquisitions in the coming months. Rottenberg previously worked as an assistant treasurer at EXL Service Holding and has over 20 years of M&A and investment banking experience.
4. Silicon Valley-based Sequoia Capital's India unit has appointed veteran tech investment banker Piyush Gupta as managing director to head strategic development for the venture capital firm which manages about $3.2 billion with a portfolio of more than 100 companies here.
Gupta, who will be based out of the company’s Singapore office, was till recently heading the TMT (technology, media and telecom) vertical in India and Southeast Asia for Deutsche Bank.
5. Amazon India claims to have touched 2 lakh sellers mark on its platform. In July 2016, Amazon had touched 1 lakh sellers mark. Earlier, in January 2017, Amazon also claimed to have witnessed a 160% Y-o-Y growth in its seller base in the country.
“We are very excited and humbled to reach the important milestone of 2 lakh sellers on the Amazon India marketplace in just four years of our operations in India. We have been laser focused on evolving a conducive environment for anyone with an intent to sell to do so locally, nationally, and globally,” said Gopal Pillai, Director, and GM, Seller Services, Amazon India.
6. VanityCask Tech Pvt. Ltd, which runs luxury beauty products discovery platform VanityCask, has raised an undisclosed amount in seed funding from Singapore-based angel and venture capital firm RB Investments as reported by VCCircle. The company will use the funds to cover its fixed costs and logistics and advertising spend, he added.
Founded by Tarun Joshi in November 2016, Mumbai-based startup delivers a beauty box containing samples of luxury beauty brands, such as Clinique, Votre, Kama and Thalgo, to users every month.
7. After spending nearly two decades at top investment bank Goldman Sachs, ace fund manager Prashant Khemka is reportedly launching his own India-dedicated investment fund. The fund will operate under Khemka’s new firm White Oak Capital, for which he is bringing together an eight-member team.
The two funds will invest in shares of up to 40 companies across sectors, but they are likely to stay away from commodity, telecom and state-run companies, reported VCCircle.
8. India’s third largest IT services provider Wipro Ltd has invested $809,690 (about Rs 5.21 crore) in Drivestream Inc to increase its stake in the US-based management and IT consulting firm, reported VCCircle. Wipro had agreed to acquire a minority equity stake in Drivestream for $5 million in March 2015. The investment was routed through Wipro’s $100-million corporate venture fund Wipro Ventures.
9. Uber Technologies Inc director David Bonderman said on Tuesday that he has resigned from the company’s board following a remark he made during an Uber staff meeting that was widely seen as offensive to women.
His resignation from the board is effective Wednesday morning.
During Tuesday’s meeting, Uber board member Arianna Huffington spoke to employees about the importance of adding more women to the board of directors.
10. Marque PE fund Bain Capital is in early talks to invest as much as $250 million in Star Health & Allied Insurance for a significant minority stake valuing the company at a billion dollars, as reported by ET. The transaction, if successful, will come as a pre-IPO round of funding and will buy out shares held by other financial investors including Sequoia Capital, ICICI Venture, Tata Capital and Oman Insurance Co.
Read More deals here.
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