The Hindu Business Line : Intel Capital interested in Indian cos

INTEL Capital, the investment and venture capital arm of Intel Corporation, sees significant potential in Indian tech companies, particularly those in the South in the areas of wireless applications, telecom services and broadband infrastructure.

The Director of Strategic Investments, Intel Capital, South Asia, Dr. Kumar Shiralagi, said that the Asia-Pacific market has become a key thrust area for Intel Capital, which is investing about one third of the overall investment thereOf this, a significant part would come to India, particularly to Hyderabad, Chennai, Bangalore and Pune.

"The venture capital investors are eyeing Indian companies lately as this is where the real growth is set to take place. We often invest in companies at the intersection of being a strategic investor and a financial partner and add value to companies we invest in. For instance, we invested in Pramati Technologies, a Hyderabad-based company in 2001 as we saw great potential in it. Likewise, we invested in Nipuna, the BPO arm of Satyam Computer."

Speaking at a meeting organised by the TiE (Indus Entrepreneurs)-Hyderabad chapter, Dr Kumar said angel funding is often done by three Fs — friends, families and fools.

In India, for instance, there are many venture capitalists and financial institutions that are keen to fund late stage companies, but there are no funds addressing the angel stage. This would gradually change, he added.

Referring to Intel Capital overall investments, Mr Kumar said investments had peaked to over a billion dollars during the tech boom phase and now stood at about $ 700 million.