Ex-Infosys CEO’s AI Startup Raises $53M

Hang Ten Systems, the artificial intelligence venture launched by former Infosys chief executive Vishal Sikka, has secured an additional $53 million in seed funding. This latest injection of capital arrives just five weeks after the company closed its initial $32 million round, bringing total financing to $85 million. The new round was led by Xora, Temasek’s early-stage investment platform, with participation from Mayfield, which spearheaded the first round. Other notable backers include Aramco Ventures, Intel CEO Lip-Bu Tan, Micron CEO Sanjay Mehrotra, and Yahoo co-founder Jerry Yang, who also serves on Hang Ten’s board.

Founded in May, Hang Ten operates on the premise that AI can radically transform how large enterprises build and maintain software. The startup targets companies with annual revenues exceeding $10 billion, offering strategic advice alongside hands-on development and modernization services. Sikka argues that the actual coding process has become nearly instantaneous and cost-free due to AI advancements. He stated, “The build part itself has basically become close to zero marginal cost, close to zero time.” According to Sikka, this shift moves the focus of software engineering away from writing code toward defining requirements and validating system performance.

This thesis is gaining traction rapidly among enterprise clients. Sikka revealed that within 25 days of their first meeting with a prospective customer, Hang Ten signed a multimillion-dollar contract to develop a mission-critical software system. He noted that he had never witnessed enterprise deals move with such speed. Currently, the Palo Alto-based firm is engaged with 21 major enterprises across the U. S., Europe, the Middle East, and Asia. Clients include Fresenius Kabi, Saudi Aramco, and Siemens Energy. The startup has already locked in multiple seven-figure contracts and is negotiating eight-figure deals, prompting Xora to approach them for investment after seeing these early wins.

Rethinking Enterprise Software Development

Hang Ten distinguishes itself not by creating foundational AI models, but by adapting existing technology to the complex workflows of large corporations. Co-founder and chief design officer Sanjay Rajagopalan explained that engineers utilize an in-house framework called Hobie, which packages reusable AI capabilities tailored for regulated industries and intricate projects. Rajagopalan emphasized the practical nature of their work, stating, “We are actually delivering production software. It’s not like we are doing some kind of PoC.”

The company claims a significant efficiency advantage over traditional methods. Rajagopalan noted that teams of two to four people can now handle projects that previously required around 30 staff members. While customers or third parties still manage final quality assurance and certification, Hang Ten promises a tenfold improvement in cost or speed, or both. This efficiency allows them to compete directly with established systems integrators. Sikka mentioned that many engagements involve replacing incumbent providers, though more than half of current opportunities stem from new projects that enterprises had previously deferred.

Despite entering a crowded market where giants like OpenAI and Anthropic are expanding into enterprise services, Sikka believes there is room for independent partners. He argued, “Enterprises still need trusted partners who are independent of the underlying platform and who work with and solely in the interest of the enterprise.” With the new funding, Hang Ten plans to expand its engineering, consulting, and sales teams. The startup currently employs about 20 to 25 people across the U. S., the Middle East, and Australia, with plans to hire in Europe and India.

Strategic Positioning and Future Outlook

Even at just four months old, Hang Ten has attracted serious attention from major tech firms. Sikka disclosed that the company has received acquisition offers from “very big companies,” though he declined to name them. These offers have been rejected as the team focuses on scaling the business rather than selling. Before launching Hang Ten, Sikka co-founded VianAI in 2019 after leaving Infosys. VianAI raised $50 million in seed funding and $140 million in a 2021 round led by SoftBank Vision Fund 2. Sikka departed VianAI in April, describing it as “going through a transaction.”

Sikka sees his new venture as having a distinct advantage over legacy service providers. He remarked, “We are fortunate that we don’t have the burden of legacy that we have to transform.” The company’s name, derived from the surfing maneuver where a rider keeps all ten toes on the board, symbolizes the ambition to help enterprises navigate what Sikka calls “probably the biggest wave of our lives.” As AI continues to reshape the industry, Hang Ten aims to be the bridge that allows large organizations to ride this wave effectively without being tethered to outdated processes.