Former Infosys CEO launches AI-powered IT services startup Hang Ten Systems with $32M seed funding

At a glance:

• Vishal Sikka, former Infosys CEO, founded Hang Ten Systems to automate enterprise software development using AI.
• The startup raised $32 million in seed funding from Mayfield, Aramco Ventures, and angel investors.
• Early customers include Siemens Gamesa Renewable Energy and Fresenius, with plans for global expansion.

What happened

Vishal Sikka, the former chief executive of Infosys, has launched Hang Ten Systems, a Bay Area-based startup aiming to disrupt the traditional IT services model through AI-driven automation. The company announced a $32 million seed round led by Mayfield, with strategic backing from Aramco Ventures and participation from undisclosed angel investors. Hang Ten's board includes Yahoo co-founder Jerry Yang, and its early leadership team includes executives with long-standing ties to Sikka from his tenure at SAP, Infosys, and his prior AI venture, VianAI.

The startup positions itself as an "enterprise AI services company" focused on agentic code generation, reusable AI skills, and domain-specific expertise. Unlike conventional IT services firms that rely on manual labor and linear scaling, Hang Ten claims its AI-native approach allows leverage to grow with each project. Its initial clients include Siemens Gamesa Renewable Energy and Fresenius, where it is delivering AI-native projects. Sikka, 59, emphasized in a blog post that the company aims to help enterprises "hang ten on the biggest wave of our lifetimes," referencing the transformative potential of AI in software development.

Why it matters

Hang Ten enters a market in flux as IT services giants like Infosys race to integrate AI tools from Anthropic and OpenAI into their offerings. The venture reflects a broader industry debate: will AI expand the addressable market for IT services, or will it fundamentally reshape how software is built and maintained? Analysts at Jefferies recently argued that IT services could be among the first sectors to face significant AI-driven disruption, while Infosys chairman Nandan Nilekani contends AI could unlock a $300 billion-$400 billion market opportunity by 2030.

Sikka's track record lends credibility to Hang Ten's ambitions. After leaving Infosys in 2017, he founded VianAI, which raised $190 million across two funding rounds and focused on AI-powered analytics and decision-making tools. Mayfield's Navin Chaddha highlighted Sikka's experience in enterprise software and the startup's scalable model as key factors in their investment. The company is actively hiring across delivery, engineering, and sales roles, signaling rapid growth plans.

How it works

Hang Ten's approach centers on automating core IT services functions—customization, integration, and maintenance—through AI agents and reusable skills. Traditional firms scale by adding more engineers, but Hang Ten's model suggests efficiency gains through AI that compound over time. The startup's team includes Navin Budhiraja (CTO), Sanjay Rajagopalan (chief design officer), and Tao Liu (senior VP of forward-deployed engineering), all of whom have worked with Sikka previously.

While details on the technology remain sparse, the emphasis on "agentic code generation" implies a focus on autonomous AI systems capable of writing and modifying software with minimal human intervention. This aligns with broader trends in generative AI, where tools like GitHub Copilot and OpenAI's Codex are already reshaping developer workflows. Hang Ten's integration of domain expertise suggests it aims to tailor AI solutions to specific industries, a strategy that could differentiate it from generic automation platforms.

Market context

The IT services industry, valued at over $1 trillion globally, has long relied on labor-intensive models. However, the rise of AI tools is forcing a reckoning. Infosys shares have dropped over 35% this year amid investor skepticism about how traditional firms will adapt. Competitors like TCS and Wipro are similarly investing in AI partnerships, but Hang Ten's model represents a more radical departure.

Mayfield's Chaddha contrasted Hang Ten with VianAI, noting that Sikka's earlier venture targeted a different segment—enterprise AI applications and analytics. Hang Ten, by contrast, is explicitly positioning itself as a services company, leveraging AI to reduce reliance on human capital. This shift could appeal to cost-conscious enterprises seeking faster, more efficient software delivery.

What's next

Hang Ten plans to expand globally, though specific regions were not disclosed. The startup's hiring spree and customer traction suggest imminent scaling. Meanwhile, the broader IT services sector will likely continue its AI integration push, with firms balancing automation investments against workforce adjustments.

Sikka's venture underscores the growing tension between established players and AI-native disruptors. As enterprises experiment with AI-driven solutions, the success of companies like Hang Ten could signal whether the industry's future lies in augmenting human labor or replacing it entirely.