India’s cloud-hosting giant has been bought for nearly $10bn by a private equity firm, raising hopes that the country’s fledgling cloud services sector will become a major player in the fast-growing technology industry.
Vinnish Technologies Pvt Ltd, which has been making its mark in the Indian IT market, said in a statement on Wednesday that it had acquired Vinnish from its Indian parent for an undisclosed amount, citing the need to reduce costs.
Vinod Vohra, founder and CEO of the Indian internet giant, said the acquisition will reduce the company’s dependence on outsourcing its IT operations to India’s state-owned enterprises (SOEs).
“The combination with Vinod VOHRA is an important step in our long-term strategy to become the global leader in cloud services,” Mr Vohras said.
“We are very excited to be working with Vinondis in this exciting space.”
Vinnishes founder Vinod Vinod told the BBC the deal was a natural evolution for the company.
“We have been working on the product and the technology for some time, and it is an investment in the long term that we will reap the benefits of,” he said.
Mr Vohrs said the new firm was a new entry in the cloud computing market.
“It will take us to a point where we can become the leader in India in cloud computing, which is the first market where we have to be on the front foot,” he added.
In September last year, Vinnishes was bought by private equity group MGT Capital for $2.6 billion.
It was also acquired by Cloudflare, a US-based web hosting service, in 2015.
Cloudflares technology allows websites to serve content over the internet and is currently used by many major online content companies including YouTube, Facebook and Twitter.
Mr Vinod said Vinnished would also be working closely with other cloud providers, including Microsoft and Oracle, to further develop its technology.
“As we continue to invest in this space, it is very important that we continue working with our cloud partners to deliver this great service to our customers,” he told the Reuters news agency.
“VinnISH is a pioneer in the industry, which we are very proud to be a part of.”
India’s cloud services market has become a hotbed of innovation with companies including Airbnb, Flipkart and GoDaddy all offering cloud services to consumers.
In April, Indian IT company Softbank acquired a majority stake in Vinnusys, marking a major coup for the Indian startup.
India is one of the most-populous markets for cloud computing services globally.
The country has about 830 million internet users and is one the fastest-growing economies in the world, according to market researcher eMarketer.