News / Economy

Facebook, Google Buy Two India-based Start-ups

FILE - The Google logo is seen on a window at the company's headquarters in Mountain View, California.
FILE - The Google logo is seen on a window at the company's headquarters in Mountain View, California.
Anjana Pasricha
Internet giants Facebook and Google have recently acquired two India-based technology start-up companies. This is expected to give a boost to entrepreneurship in India, home to tens of thousands of software engineers and a thriving information technology industry.
 
Facebook clinched the deal to acquire Little Eye Labs, a company founded about a year and a half ago by four engineers in Bangalore, in early January. The company builds mobile app analysis tools and is believed to have been bought for $10-15 million. It is the first acquisition by the social media giant of an Indian start-up.
 
Google has acquired the cyber security firm, Imperium, which has offices in both Bangalore and California. It was founded three years ago to tackle spam, fraud and abuse on the Internet. Media reports put the deal’s value at about $9 million. 
 
Although the two deals are fairly small, they are significant because they have put Indian start-ups on the radar of the global technology companies, which make regular acquisitions of small companies either for the technology they develop or the talent of their founders.
    
Rutvik Doshi, with venture firm, Inventus Capital Partners in Bangalore, India’s technology hub, thinks the acquisitions are symbolically important.  
 
“Till date none of these large U.S. companies had ever acquired anything in India to write home about. If they both turn out to be successful for these respective companies, they will start looking at India more seriously, in terms of there is more talent, there is more technology, and entrepreneurship happening here. Even though these acquisitions may not be very large, but I think from the symbolic point of view, it is the beginning of a new era,” said Doshi. 
 
Analysts agree that the two deals will give a boost to entrepreneurship in India, where venture capital to fund start ups is not always easy to come by.  
 
India’s IT industry has attracted the country’s brightest minds and Indian software engineers have gained a reputation worldwide, including in Silicon Valley. Most work for big Indian technology companies, but the number of Indian technology start-ups is on the rise.
 
Rajesh Sawhney, founder of GSF Accelerator, one of the companies which funded Little Eye Labs, said most of the start-ups in India so far have focused on developing products for the home market. However, the recent deals will inspire entrepreneurs and venture capitalists to broaden their vision.
 
“The time now is to encourage these start ups to start thinking global and that is what [the] internet allows today. We need to encourage our bright, young talent in India to start building products for world markets like Israelis have done or like U.S. start-ups do. Just because we have a large domestic market does not mean we stay focused there,” said Sawhney.
 
Bangalore’s thriving technology services and outsourcing industry mostly does back office work for Western companies and has put India on the global technology map. It is the success and talent created by that industry which is eyeing the road of entrepreneurship.

You May Like

Video Experts Warn World Losing Ebola Fight

Doctors Without Borders says world is losing battle against Ebola, unless wealthy nations dispatch specialized biological disaster response teams More

Video Experts: Rise of Islamic State Significant Development in Jihadism

Many analysts contend the group - which grew out of al-Qaida in Iraq - has been rebuilding for years More

US-Based Hong Kongers Pledge Support for Pro-Democracy Activists

Democracy advocates call on Chinese living abroad to join them in opposing new election rules for their home territory More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Larger Than Life Chinese Lanterns Make Southern California Appearancei
X
Elizabeth Lee
September 02, 2014 8:57 PM
Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Larger Than Life Chinese Lanterns Make Southern California Appearance

Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Experts See Rise of ISIS as Significant Development

The Islamic State’s rise seems sudden. It caught the U.S. by surprise this summer when it captured large portions of northern Iraq and spread its wings in neighboring Syria. But many analysts contend that the group - which grew out of al-Qaida in Iraq - has been rebuilding for years. VOA's Jela de Franceschi takes a closer look at the rise of ISIS and its implications for the Middle East and beyond.
Video

Video Israel Concerned Over Syrian Rebels in Golan

Israeli officials are following with concern the recent fighting between Syrian rebels and government forces near the contested Golan Heights. Forty-four U.N. peacekeepers from Fiji have been seized by Syrian Islamist rebels and the clashes occasionally have spilled into Israel. VOA’s Scott Bobb reports from Jerusalem.
Video

Video Ukraine Schools Resume Classes, Donate to Government Forces

A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video US Detainees Want Negotiators for Freedom in North Korea

The three U.S. detainees held in North Korea were permitted to speak with foreign media Monday. The government of Kim Jong Un restricted the topics of the questions, and the interviews in Pyongyang were limited to five minutes. Each of the men asked Washington to send a representative to Pyongyang to secure his release. VOA’s Carolyn Presutti has our story.
Video

Video Turkmen From Amerli Describe Survival of IS Siege

Over the past few weeks, hundreds of Shi'ite Turkmen have fled the town of Amerli seeking refuge in the northern city of Kirkuk. Despite recent military gains after U.S. airstrikes that were coordinated with Iraqi and Kurdish forces, the situation remains dire for Amerli’s residents. Sebastian Meyer went to Kirkuk for VOA to speak to those who managed to escape.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.