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

UN: 1 Million Somalis at Risk of Hunger

Group warns region is in dire need of humanitarian aid, with at least 200,000 children under age of five acutely malnourished as drought hits southern, central part of nation More

Human Rights Groups Allege Supression of Freedoms in Thailand

Thailand’s military, police have suppressed release of independent report assessing human rights in kingdom during first 100 days of latest coup More

Jennifer Lawrence Contacts FBI After Nude Photos Hacked

'Silver Linings Playbook' actress' photos were posted on image-sharing forum 4chan; Federal Bureau of Investigations is looking into matter More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ukraine Schools Resume Classes, Donate to Government Forcesi
X
September 02, 2014 12:58 PM
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 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 Internet, Technology Offer New Tools for Journalists

The Internet and rapidly evolving technology is quickly changing how people receive news and how journalists deliver it. There are now more ways to tell a story than ever before. One school in Los Angeles is teaching the next generation of journalists with the help of a state-of-the-art newsroom. Elizabeth Lee has this report.
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.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.

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.