Former Infosys chief executive Vishal Sikka has launched Hang Ten Systems, an enterprise AI services startup seeking to change how companies build, modify, and operate business software.
The Bay Area company has raised $32 million in seed funding led by Mayfield, with a strategic investment from Aramco Ventures and participation from angel investors. Yahoo co-founder Jerry Yang has joined its board.
Hang Ten Targets Traditional IT Services Work
IT services companies have traditionally earned revenue by assigning large teams to customise, integrate, and maintain enterprise software. Hang Ten plans to use AI agents, automated code generation, reusable skills, and industry expertise to complete more of that work.
The company says its systems can continuously develop and update enterprise software rather than treating each implementation as a separate, labour-intensive project. Its model is intended to become more efficient as the technology and knowledge developed during one engagement are reused in later projects.
Mayfield said conventional services businesses often scale in proportion to their headcount. It believes Hang Ten can expand differently because the software and AI capabilities created for each customer can provide leverage across future work.
Hang Ten is already working with Siemens Gamesa Renewable Energy and healthcare company Fresenius on AI-native software projects. Mayfield managing partner Navin Chaddha said the startup secured customers shortly after beginning operations.
Experienced Enterprise Software Team Joins Sikka
Sikka previously spent more than a decade at SAP, later led Infosys, and served on Oracle’s board. After leaving Infosys in 2017, he founded enterprise AI company VianAI, which focused on AI applications, analytics, and decision-support systems.
Hang Ten said its early leadership group includes executives who previously worked with Sikka at SAP, Infosys, and VianAI. Navin Budhiraja serves as chief technology officer, Sanjay Rajagopalan as chief design officer, and Tao Liu as senior vice president of forward-deployed engineering.
The company is hiring across engineering, customer delivery, sales, and leadership. It also plans to establish teams in multiple international locations as it adds enterprise customers.
AI Creates New Pressure on IT Services Companies
Hang Ten enters the market as established providers increase their own AI investments. Infosys, for example, has formed partnerships with companies including OpenAI and Anthropic while developing AI-led services through its Topaz platform.
Infosys estimates that AI-first services could represent a $300 billion to $400 billion market by 2030. Chairman Nandan Nilekani has argued that AI will increase demand for adaptable IT services companies rather than eliminate them.
Others expect greater disruption as businesses automate software development and maintenance. Hang Ten is betting that companies will increasingly buy outcomes delivered through AI systems instead of paying primarily for large teams of consultants and developers.
Featured image credits: tomraftery.com @TomRaftery
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