Key facts
- Vishal Sikka, former CEO of Infosys, has launched a new startup named Hang Ten Systems.
- The startup aims to leverage AI for enterprise software development, modification, and operation.
- Hang Ten Systems secured $32 million in seed funding, with Mayfield leading the round.
- Aramco Ventures and angel investors also participated in the funding round.
- The company is already working with clients such as Siemens Gamesa Renewable Energy and Fresenius.
Vishal Sikka, the former CEO of IT services giant Infosys, has launched a new startup named Hang Ten Systems, aiming to disrupt the traditional IT services industry by leveraging artificial intelligence. The company announced on Wednesday that it has secured $32 million in seed funding, with Mayfield leading the investment round. Aramco Ventures also participated as a strategic investor, alongside other angel investors.
Hang Ten Systems intends to utilize AI-driven development and automation to help enterprises continuously build, modify, and operate their software. This approach challenges the decades-old model of outsourcing tech tasks that has generated billions for firms like Infosys. The startup's launch comes at a time of significant debate within the industry regarding AI's potential to either expand the market or fundamentally transform how enterprise software is created and maintained.
Sikka, who has extensive experience in enterprise software from his time at SAP and as a board member for Oracle, believes AI can automate a substantial portion of the work currently performed by IT services firms. Mayfield Managing Partner Navin Chaddha noted that Hang Ten Systems, which began operations just a month prior, already has customers. Notable clients include Siemens Gamesa Renewable Energy and Fresenius.
The core team at Hang Ten Systems comprises executives who have previously worked with Sikka at SAP, Infosys, and his prior venture, VianAI. This includes co-founders Navin Budhiraja (CTO), Sanjay Rajagopalan (Chief Design Officer), and Tao Liu (SVP of Forward Deployed Engineering). Sikka's previous startup, VianAI, focused on enterprise AI applications and analytics, while Hang Ten Systems is positioned as an AI services company centered on agentic code generation and reusable AI skills.
Mayfield's investment in Hang Ten Systems is based on Sikka's track record and the belief that the startup's AI-native model offers a scalable advantage over traditional service firms, which typically scale linearly with headcount. Analysts are closely watching the impact of AI on the IT services sector, with some predicting significant disruption while others, like Infosys chairman Nandan Nilekani, see AI as an opportunity for market expansion. Infosys itself is positioning AI as a growth area, estimating the AI-first services market could reach $300 billion to $400 billion by 2030.