India Internet News
Citrix Systems Acquires Nexus Venture For Cloud Computing Start-Up
15 July 2011
In an agreement that highlights the rising graph of outputs for technology enterprise capitals. Nexus Venture backed start-up Cloud.com has been taken by USA's Citrix Systems. As per the person who knows about the transaction, Citrix has spend more than Rs.1,000 crore (between $200 million and $250 million) for cloud computing start-up.
An Indian company and a supportive financier of the company, Nexus Venture targets the biggest outcome and the third from its portfolio since Salesforce.com took web-conferencing company Dim Dim in January at $31 million approximately. The co-founder of Nexus Venture, Naren Gupta said, "We invested in Cloud.com in 2009 when it was still called VM Ops, since then the start-up has targeted the Indian market and today Tata Telecom is its largest customer."
The beginning of cloud computing - with one of the biggest development centers located in Hyderabad - clearly indicates to investors a new trend, the rise of Indian market for best technology. "We are seeing a new type of technology consumer in India who wants flexible, economical and easy-to-use computing solutions. We picked up this trend towards cloud computing when one of our Indian start-ups NetMagic asked for such a solution," as stated by Gupta. For this reason, Nexus invested in more than 5 cloud computing start-ups in India along with cloud storage company Gluster and Aryaka with $50 million in whole spent in this sector until now.
The Indian capital company has long shown a preference for technology investments. Based on IDG Ventures' research, it is confirmed by the high outflow of start-ups that have generally provided by more than five returns to investors an early stage technology expenditure while investments in non-technology industries with just over three times the return.
The chairman and managing director of IDG Ventures, Sudhir Sethi, stated, "75 companies that venture capitalists exited from were in the technology sector. $75 billion of risk capital will flow into India by 2015." He noticed investments and outcomes in the venture capital industry between 2004 and 2009. He presumes a substantial portion of capital to flow into the technology start-ups supported by strong exits in the sector.
Industry analysts says that areas like cloud computing are hot investment subdivision to technology company capital since clients move towards flexible, pay as you use solutions that is expected to generate a new market going beyond $11 billion by the end of 2013. Nexus' Gupta who is confident about his investments to reach a greater height in the cloud computing space in the coming year stated that, "To bag our biggest exit in just over two years after we first invested in May 2009 is a very significant return for us."