Intel Capital, the venture investment arm of semiconductor giant Intel Corporation, will invest a total of $23 million in three Indian companies, namely July Systems, KLG Systel and MCX.
The firm did not disclose the amounts it is investing in each company. The investments will be made from the $250 million Intel Capital India Technology Fund, which was established in 2005 and makes investments in Indian technology companies to stimulate innovation and the growth of the country’s IT industry.
July Systems provides mobile internet solutions that enable media brands to publish, distribute and monetise inventory, and personalise services for consumers. It will use the investment to grow its sales, business development and operations teams in North America and Asia.
KLG Systel provides computational engineering sciences, enterprise project management and manufacturing automation solutions to the power, metals, manufacturing and infrastructure sectors in India. The company also provides grid and energy management and efficiency solutions to power utilities and consumers.
MCX is an Indian electronic commodity futures exchange that trades more than 40 commodities from various market segments including silver and gold, energy, metals, fibre and agro-commodities. It facilitates online trading, clearing and settlement operations across the country. MCX and its sister companies have a network of 4,000 bulk warehouses and an extensive broker network in India.
Intel’s investment in the three companies reinforces the firm’s commitment towards fostering Indian innovation, Arvind Sodhani, president of Intel Capital and executive vice president at Intel, said in a statement. “We believe that India is poised for the next phase of growth,” he remarked.
In December 2009, Intel Capital invested $15 million in Financial Informational Network and Operations, an Indian banking technology provider, alongside HSBC Private Equity Asia and International Finance Corporation. It invested $23 million in three Indian technology companies in January 2009 and another $17 million in three companies in July 2008. In all, it has invested more than $200 million in Indian companies across 10 cities since 1998.
Globally, the firm has invested about $9.5 billion in more than 1,050 companies in 47 countries since 1991. Of these companies, 175 have gone public while 241 have either been acquired or participated in a merger.