Intel will invest $45 million in India this year

Intel will make a $45 million capital investment in India this year, with a number of deals already in the pipeline.

The venture capital arm of the chip firm, Intel Capital, plans to continue to invest in the increasingly competitive Indian market, with the country seeing the largest investment by Intel outside of its domestic setting.

More funds from Intel’s $250 million Indian investment kitty will be used to fund ventures, with the firm not put off by the large number of other funds which are similarly planning on investing in the country.

“We expect this year to be more competitive than last year because there were many inactive funds last year which are under pressure to invest this year, which will drive up valuations,” said Sudheer Kumar Kuppam, managing director of Intel Capital in India.

The total invested has risen since 2009 when 99 transactions were made amounting to $356 million, while last year saw $449 million with 92 investments according to the Wall Street Journal.

It is now thought that this year will see another increase in spending, with two deals expected to be completed by the end of the month.

Last year Intel was involved in eight of these transactions, missing out on a number due to stiff competition and high valuations.

The firm originally set up its India Technology Fund back in 2005, and has now seen 65 percent of this spent, meaning that a total of $230 million has been spent in the country since Intel Capital began investing in1998.

Of course, being the largest chip-maker in the world means that setting up another fund should not be too difficult.

“We will raise another fund only after fully deploying this money, as we don’t need to go out and raise money from a third party,” Kuppam said.

According to Kuppam investments in India are beneficial for the firm as it forges connections with tech companies that can boost sales.

Intel now has a portfolio of around 70 investments including mobile handset software developer July Systems, software developer Persistent Systems, and telecoms infrastructure product provider Tejas Networks.

As well as investing Intel also plans to cash in on a small number of firms, including One97 Communications.