Ex-Infosys Exec Launches Disruptive New Startup to Shake Up IT Services Industry

AI Startup Hang Ten Systems, Led by Former Infosys CEO, Raises $32 Million in Seed Funding

For years, IT services firms have been a major player in the tech industry, providing companies with outsourcing solutions for tasks like customizing, integrating, and maintaining enterprise software. Vishal Sikka, the former CEO of Infosys, one of India’s largest IT firms, is now venturing into the world of AI, believing that it can revolutionize the way these tasks are handled.

His latest endeavor, Hang Ten Systems, recently secured a $32 million seed funding round led by Mayfield, with additional investments from Aramco Ventures and angel investors. The startup, which boasts Yahoo co-founder Jerry Yang on its board, specializes in using AI-driven development and automation to help enterprises build, modify, and operate software continuously.

As Hang Ten enters the market, it faces competition from other IT services firms, such as Infosys, that are also exploring AI solutions through partnerships with companies like Anthropic and OpenAI.

The launch of Hang Ten comes at a time when there is a debate surrounding the impact of AI on the industry. Some believe that AI will expand the market for IT services, while others speculate that it could fundamentally change how enterprise software is developed and delivered.

Despite the ongoing discussions, Hang Ten has already garnered interest from enterprises eager to explore AI-driven services, particularly given Sikka’s background in enterprise software development at SAP and his experience as a board member for Oracle. Mayfield managing partner Navin Chaddha revealed that the startup has already acquired customers within its first month of operation.

Hang Ten has already begun working with companies like Siemens Gamesa Renewable Energy and Fresenius on AI-centric project delivery. In a blog post announcing the venture, Sikka expressed his excitement about helping large enterprises navigate the “biggest wave of our lifetimes” with the help of Hang Ten.

Based in the Bay Area, Hang Ten is currently in the process of expanding its team across various departments to meet the growing demand from enterprises. The startup’s early team includes executives who have previously collaborated with Sikka at SAP, Infosys, and his previous venture, VianAI.

After stepping down as CEO of Infosys in 2017, Sikka founded VianAI, which focused on enterprise AI applications and analytics tools. In contrast, Hang Ten positions itself as an enterprise AI services company that emphasizes agentic code generation, reusable AI skills, and domain expertise.

Mayfield’s decision to support Hang Ten was influenced by Sikka’s extensive experience in the industry and their belief in the scalability of the startup’s AI-native model. They see Hang Ten’s approach as a departure from traditional services firms, with a leverage that grows with each project.

Investors are closely watching how AI will impact the IT services industry, with some predicting significant disruption. However, others like Infosys chairman Nandan Nilekani believe that AI could actually expand the market for IT services.

Infosys itself is optimistic about the potential of AI-first services, projecting a market worth $300 billion to $400 billion by 2030. As the industry continues to evolve, traditional IT services firms like Infosys are adapting to the changing landscape, with a focus on embracing AI as an opportunity rather than a threat.