Infosys Ltd has bought a minority stake in Delaware, US-based start-up Whoop, which makes activity trackers, for $3 million, the software services firm said on Monday.
The deal, which marks the Indian company’s sixth investment from its $500 million innovation fund, could help drive revenues from its clients in the wellness space and professional sports.
The investment underscores the promise offered by new-age wearable technologies that have attracted companies ranging from Apple Inc. to Fitbit Inc.
Whoop sells devices worn by athletes to monitor heart rate, sleep patterns and other data. Infosys said its investment allows it to have “a minority holding, not exceeding 20% of the outstanding share capital of the capital” and it expects to close its investment by 16 December.
The aggressive approach of partnering with start-ups focused on disruptive technologies underscores Infosys chief executive Vishal Sikka’s so-called ‘New and Renew’ strategy to reinvigorate India’s second-largest software services company.
Last week, Infosys invested in CloudEndure, an Israeli start-up that helps large companies move applications to cloud and cloud-based disaster recovery software.
Infosys has spent $25.4 million to buy stakes in five start-ups and invested an undisclosed investment in September to become a limited partner in Vertex Ventures, a Palo Alto-based venture capital firm.
It invested $4 million in CloudEndure and paid $1.4 million for a 5% stake in ANSR Consulting, a Bengaluru firm that helps global firms set up offshore captive centres in India; $15 million in a spin-off unit of Dreamworks Animation; and $2 million to pick a minority stake in AirViz, a personal air quality monitoring start-up from Carnegie Mellon University.
Infosys has also bought three firms in 2015, spending $390 million to purchase automation technology provider Panaya, digital commerce firm Skava and Noah Consulting Llc.