In line with its strategy to build stronger ties with the Indian tech startup community, $20 Bn German software maker SAP is looking to invest in the startups in the next couple of months.
With the planned investment, SAP joins a string of global technology companies like Google, Microsoft and Cisco, which have a dedicated focus on Indian startups either through investments or by providing software expertise and other programmes.
Bernd Leukert, member of the executive board – products & innovation, SAP, said “Startups can be creative in adding their new business ideas and applications on top our technology platforms which is mutually beneficial to both of us. The amount of money to be invested in startups is not yet decided but we will definitely do it this year.”
SAP is one of the major players in enterprise applications in terms of software and software-related service revenue. Based on market capitalization, it is the world’s third largest independent software manufacturer and is listed under the symbol “SAP” on stock exchanges such as Frankfurt Exchange and NYSE.
The technology MNC has its second largest research & development (R&D) centre in Bengaluru. SAP also has other startup programmes in its portfolio. With ‘Startup Focus’ it helps promising startups in the big data, predictive and real-time analytics space to develop new applications on its HANA technology platform.
It also has a $1 Bn venture capital arm, Sapphire Ventures which invests in mid-to-late-stage companies that have a minimum revenue of $2 Mn.
According to Nasscom, Indian IT’s trade body, India is home to 3,100 startups making it the third largest base in the world. The figure is likely to treble to over 10,000 in another five years, employing 250,000 people.