For decades, IT services companies have made billions of dollars by allowing them to outsource technology tasks such as customizing, integrating, and maintaining enterprise software. Vishal Sikka, former CEO of Infosys, one of India’s largest such companies, is now betting that AI can do much of that work.
Your new startup, Hang ten systemshas raised a $32 million seed round led by Mayfield, said Wednesdaywith a strategic investment from Aramco Ventures and the participation of angel investors. The startup, whose board includes Yahoo co-founder Jerry Yang, said it helps companies continually build, modify and operate software using AI-powered development and automation.
Hang Ten is entering a market where IT services companies, including Infosys, are racing to adapt to AI through partnerships with companies such as anthropic and OpenAI.
The startup’s launch comes amid growing debate over whether AI will expand the industry’s addressable market or fundamentally alter the way enterprise software is built, maintained and delivered.
Clearly, some companies are eager to test the idea of AI services, especially from someone as experienced as Sikka, who spent 12 years developing enterprise software at SAP and then as a board member at Oracle. Mayfield managing partner Navin Chaddha told TechCrunch that the company “just started a month ago” and already has clients.
The startup said it is working with clients such as Siemens Gamesa Renewable Energy and Fresenius on executing native AI projects. in a separate blog post Announcing the venture, Sikka, 59, said Hang Ten was already helping big companies “make ten on the biggest wave of our lives.”
Based in the Bay Area, Hang Ten told TechCrunch that it is hiring in delivery, engineering, sales and leadership and plans to expand into multiple locations globally to meet business demand.
The startup’s initial team includes executives who have worked with Sikka for years at SAP, Infosys and his previous enterprise AI startup. VianAIaccording to their LinkedIn profiles. Among them are co-founders Navin Budhiraja, the startup’s chief technology officer, Sanjay Rajagopalan, its chief design officer, and Tao Liu, its senior vice president of advanced engineering.
After stepping down as CEO of Infosys in 2017, Sikka founded VianAI, which emerged from stealth in 2019 with $50 million in seed funding and It later raised $140 million. in a 2021 round led by SoftBank Vision Fund 2.
Chaddha told TechCrunch that Hang Ten is distinct from VianAI and described Sikka’s previous company as focused on a different market. VianAI focused on enterprise AI applications and analytics tools designed to help companies use artificial intelligence in decision making. Hang Ten, by contrast, describes itself as an enterprise AI services company built around agent code generation, reusable AI skills, and domain expertise.
Mayfield backed Hang Ten because of Sikka’s professional experience, as well as his belief that the startup’s native AI model can scale differently than traditional service companies.
“Traditional services scale linearly with headcount,” Mayfield said. “Hang Ten is designed to grow in influence with each project.”
Hang Ten comes as investors debate how AI will impact the economics of the IT services industry. Analysts at Jefferies argument Early this year, IT services may be among the first sectors to face significant disruption from AI. Infosys Chairman Nandan Nilekani, however, this week saying AI could expand the industry’s addressable market.
Infosys itself has tried to position AI as an opportunity rather than a threat, telling investors this month that “AI-first services” could They represent a market of between 300 and 400 billion dollars by 2030. The debate comes as investors reassess the prospects of traditional IT services companies, with Infosys shares falling more than 35% this year.
When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.
