Three Indian companies receive Rs105 crore funding from Intel Capital

Intel's investment arm Intel Capital announced today $23 million (around Rs 105 crore) worth of investment in three Indian technology firms- July Systems, KLG Systel and commodity futures electronic exchange MCX.

It did not put a figure to the individual investments it made. The investments will be funded through its $250-million Intel Capital India Technology Fund, set up in 2005. With these investments, Intel Cap has invested over 60 per cent of the fund.

Intel Capital's total investments exceed $9.5 billion in over 1,050 companies in 47 countries. It has been investing in India since 1998 and its portfolio in India stands at $200 million (over Rs 920 crore) in more than 60 companies.

According to the company it would focus more on new investments in 2010 unlike in 2009 when it chose to make follow-on investments in firms in its existing portfolio.

Arvind Sodhani, president of Intel Capital and Intel's executive vice president said last year the company did see a need to focus on portfolio firms given the global economic situation and hence its high follow-on investment but since this year the portfolio firms were in a better position a shift towards new investments was in order.

One of the few venture capital firms that invested even during the downturn, Intel Cap invested $327 million, including $100 million in new investments globally in 2009. Its 107 investments worldwide included 25 new investments and 82 follow-on investments in portfolio companies. It invested half of its dollar investments outside the US and Canada.