Intel to Invest $45 million in Indian Start-ups this year

Intel Capital, the venture capital arm of Intel has announced its plans to invest at least $45 million in Indian start-ups this year, the WSJ reported.

Since 1998, when it entered the Indian markets, Intel has brought investments worth $230 million across 70 companies. It was reported that some deals are already in work and Intel is expected to invest in at least two companies by the end of March.

Intel explained that investments in India offer good returns and also provide access to technology companies which boosts processor sales. A win-win situation for the company.

Intel’s current portfolio includes “Tejas Networks India Pvt. Ltd, a telecom infrastructure products provider; July Systems Inc., a software developer for mobile handsets; Persistent Systems Pvt. Ltd, a software products developer; and Global Talent Track Pvt. Ltd, a vocational education services company.”

In India, the frequency and volume of investments is growing each year. The technology sector is poised to be one of the most lucrative markets as discussed by the people from the industry itself. The only stumbling block, however, is funding. But that may soon change. A total of 92 investments worth $449 million was made last year compared to $356 million in 2009. That is a 23.5 percent increase from 2009. This year, we can expect to see an increase in venture funding as well, especially with Accel Partners and Intel all hungry for investments in India.

It isn’t hard to explain why more funds are flowing into India. The country has proven to the world that it can breed technology innovation. RockeTalk and Moodler are two start-ups which have recently caught our eyes. Check them out and give us a heads up if you happen to know any innovative start-ups in India.