Information technology (IT) and outsourcing services major Infosys on Thursday said that it will invest $1 million (Rs 7.2 crore at current exchange rates) in Mumbai-based drone startup ideaForge Technology.
The capital, via the company’s Innovation Fund, comes on top of the original round of $1.5 million (Rs 10.91 crore) that Infosys had led in ideaForge back in December 2016.
According to Bengaluru-headquartered Infosys, which announced the investment in a regulatory disclosure made with the stock exchanges, the fresh tranche of capital is aimed at meeting the working capital needs of the UAV (unmanned aerial vehicle) system manufacturer as well as boosting its R&D, sales, marketing, and business development activities.
IdeaForge’s drone technology solutions are increasingly being used across a wide spectrum of organizations, Infosys said, noting that several of the firm’s customers have also embraced UAV systems as they digitalize rapidly.
The funding is expected to enhance joint capabilities to help our customers better, it added.
Following the latest infusion, Infosys will continue to hold a minority stake -- not exceeding 20% of outstanding share capital -- in ideaForge. It expects the investment, which remains subject to customary closing conditions, to be completed in the fourth quarter of FY 2021.
It will take the total amount of funds raised by the startup to nearly $15 million, according to VCCEdge data.
IdeaForge was incubated at SINE IIT Bombay and CIIE, Ahmedabad, and founded by Ankit Mehta, Rahul Singh, Ashish Bhat, and Vipul Joshi in 2007.
Since then, the startup has evolved into one of the leading manufacturers of drones in India with a wide range of rugged and high precision UAV systems in its portfolio. The products from the company are used for delivery, inspection, surveillance, and mapping across fields ranging from defense and homeland security to mining, construction, agriculture, energy and utilities.
For Infosys, the investment comes a month after its acquisition of Melbourne, Victoria-based Carter Digital. The deal was made by the company to strengthen its creative digital capabilities across Australia. However, financial terms of the deal were not disclosed.
In the third quarter ended December 2020, the IT services firm’s revenue went up 12.3% YoY to Rs 25,927 crore while profits rose 16.6% to Rs 5,197 crore.