Ex-Infosys Leader Launches Innovative Startup to Disrupt the IT Services Industry
For years, IT service companies have generated substantial revenue by allowing businesses to outsource various technology-related tasks such as the customization, integration, and maintenance of enterprise software. Vishal Sikka, the former CEO of Infosys—one of India’s largest IT services firms—believes that artificial intelligence (AI) can automate much of this work.
Sikka’s new venture, Hang Ten Systems, has successfully secured $32 million in initial funding, led by Mayfield, with contributions from Aramco Ventures and several angel investors. The startup, which boasts Yahoo co-founder Jerry Yang on its board, aims to assist enterprises in continuously developing, modifying, and managing software through AI-driven tools and automation.
Hang Ten enters a competitive landscape where IT service providers, including Infosys, are striving to embrace AI through partnerships with firms like Anthropic and OpenAI.
The launch of this startup occurs amid discussions about whether AI will broaden the market opportunities available to the industry or significantly change the processes of building, maintaining, and delivering enterprise software.
Notably, many enterprises appear keen to explore AI-driven services, especially considering Sikka’s extensive background with enterprise software, having spent 12 years at SAP and later serving on Oracle’s board. Mayfield Managing Partner Navin Chaddha indicated that Hang Ten is already operational and has begun acquiring clients.
The startup is reportedly collaborating with firms like Siemens Gamesa Renewable Energy and Fresenius to implement AI-driven project delivery. In a separate statement marking the launch, Sikka mentioned that Hang Ten is positioning itself for “the biggest wave of our lifetimes.”
Located in the Bay Area, Hang Ten announced plans to hire across various departments, including delivery, engineering, sales, and management, with intentions to expand globally to cater to enterprise needs.
The initial team comprises executives who have worked alongside Sikka at both SAP and Infosys, as well as his previous AI venture, VianAI. Co-founders include Navin Budhiraja as CTO, Sanjay Rajagopalan as chief design officer, and Tao Liu as senior vice president of forward-deployed engineering.
After stepping down from Infosys in 2017, Sikka launched VianAI, which gained visibility in 2019 with $50 million in seed funding, followed by an additional $140 million in a 2021 funding round led by SoftBank Vision Fund 2.
Chaddha emphasized that Hang Ten is different from VianAI, as the latter focused on enterprise AI applications and analytics, designed to facilitate AI in business decision-making. In contrast, Hang Ten positions itself as an enterprise AI services organization centered around code generation, reusable AI capabilities, and industry-specific knowledge.
Mayfield chose to invest in Hang Ten based on Sikka’s experienced career and the belief that its AI-centric model can scale more effectively than traditional service models.
“Conventional services grow at a linear pace with workforce numbers,” noted Mayfield. “Hang Ten’s structure allows for increased leverage with each project.”
Hang Ten emerges as investors take a closer look at AI’s potential influence on the IT services sector. Analysts from Jefferies earlier this year suggested that IT services could be among the first industries to encounter substantial changes due to AI. Conversely, Infosys Chairman Nandan Nilekani recently indicated that AI might actually enlarge the industry’s market opportunities.
Infosys itself aims to frame AI as a growth opportunity, telling investors that “AI-first services” could form a market worth $300 billion to $400 billion by 2030. This discussion is taking place as investors reevaluate traditional IT service firms, with Infosys shares having fallen over 35% this year.
