Asia's largest software company, Tata Consultancy Services, is taking a renewed look at its role as a venture capitalist. The company is looking at tying up with venture capitalists to invest in technology-focussed outfits. Earlier, it used to fund startups on its own.
S Ramadorai, managing director and chief executive officer of TCS said, "We are looking at partnering with venture capitalists for joint investments. This time around, the approach will be more formalised."
TCS had decided to go easy on venture funding activity after its initiative with Viventures ran aground. The renewed interest can be traced to the various delegations of Silicon Valley firms coming to Indian shores in the recent past.
These firms had expressed interest in technology and tech-based startups in India.
The company had an arrangement with Europe-based venture fund Viventures, a company of the Vivendi group, whereby TCS was looking at opportunities to tap technology within the VC firms' portfolio of companies.
But nothing materialised on this front. Said Ramadorai "At some point in time we realised that the returns were not satisfactory. Companies in which Viventures had invested in ultimately didn't meet with the expectations."
Ramadorai told Business Standard that TCS is also looking at companies outside India to strengthen its portfolio.
He cited companies in China and Hungary, as technology hotbeds. He refrained from divulging further details on this issue.
The company is expected to make an announcement on this.
As part of its direct investments, TCS has an interest in eAsiaFinance, a wealth management solutions company, Jataayu Software, a company focussed on mobile computing and multimedia and video streaming company Innova TV. It had an equity stake in the online forex and commodity broking firm, eMecklai but had recently exited the investment.
eAsiaFinance is a joint venture between TCS, Swedish bank SEB, McKinsey & Co's venture capital arm Compass, and New York-based Ankar Capital.
