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HCL, Tech Mahindra to invest $2.5 mn into IaaS startup

HCL, Tech Mahindra to invest $2.5 mn into IaaS startup
Photo Credit: 123RF.com
31 Aug, 2021

HCL and Tech Mahindra are set to invest $1.25 million each into a Delaware, United States based infrastructure as a service (IaaS) startup, Austin GIS.  

While Noida based HCL said it will gain 13.9% Series A dubbed preference shares of the company, through the investment, Pune based Tech Mahindra said it will gain 13.8%, as per separate stock exchange filings.  

Read: IT services spends in India to touch $18 bn this year: Gartner 

HCL said the investment will help it tap on growth opportunities in the industries of Internet of Things (IoT) and 5G RAN, which complement its offerings as an IT service provider.  

It will make its investment via wholly owned subsidiary HCL Bermuda, at $1 per share.  

Tech Mahindra said in its filing that AustinGiS is an 5G services and IoT service provider incorporated in 2021, with a projected revenue of $28 million in the calendar year ending 2021. “The investment will help Tech Mahindra develop new offerings in its loT/5G capabilities by opening up a strong ecosystem of partners with specialization in SG/loT technology.”  

Tech Mahindra expects its deal to close by September 15.