Yokogawa Electric to invest in fund of funds to collaborate with Indian startups
NEW DELHI, NNA - Yokogawa Electric Corp. of Japan has decided to invest in a fund of funds for Indian startups as a way of expanding its business.
Yokogawa Electric agreed on May 15 to invest an undisclosed sum in the Nippon India Digital Innovation Fund of Funds, which is managed by a subsidiary of Nippon Life India Asset Management Ltd. (NAM India), the industrial and electrical equipment maker said Thursday.
The Tokyo-based manufacturer has yet to disclose the timing of the investment.
The vehicle invests in early-stage venture capital funds in India. The 15 to 20 invested funds cover artificial intelligence, the internet of things, biotechnology, automation and blockchain.
The fund of funds will “play a catalytic role” in letting Japanese companies make use of Indian startups’ “digital innovation”, NAM India CEO Sundeep Sikka said in a press release Thursday.
Yokogawa Electric is expected to access the latest information on promising startups, look for chances to form alliances and seek entry into new markets, the press release said.
Regional subsidiary Yokogawa Technology Solutions India Pvt. Ltd. will develop relationships with the startups, it added.
Yokogawa Electric set up an Indian subsidiary in 1987 to supply control systems for energy plants and monitoring systems for water and sewage. The firm now seeks for digital transformation of its existing business while focusing on developing new markets in biotech, water, ocean and space.
The fund of funds was born out of an October 2018 cooperation deal between Tokyo and New Delhi. They agreed to join forces in helping digital startups among other tech projects.