Vishal Sikka, the former chief executive of Infosys, is launching a new venture that aims to reshape the $300 billion IT services industry using artificial intelligence. His startup, Hang Ten Systems, announced Wednesday it has raised a $32 million seed round led by Mayfield, with strategic backing from Aramco Ventures and participation from angel investors including Yahoo co-founder Jerry Yang, who sits on the company’s board.
Hang Ten enters a market where IT services giants like Infosys, Tata Consultancy Services, and Wipro are racing to adapt to AI through partnerships with companies such as Anthropic and OpenAI. The startup’s launch comes amid a growing debate over whether AI will expand the industry’s addressable market or fundamentally alter how enterprise software is built, maintained, and delivered.
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An AI-native model built on decades of enterprise experience
Sikka, 59, spent 12 years building enterprise software at SAP before leading Infosys from 2014 to 2017. He later founded VianAI, which emerged from stealth in 2019 with $50 million and raised $140 million in a 2021 round led by SoftBank Vision Fund 2. Hang Ten is distinct from VianAI, according to Mayfield Managing Partner Navin Chaddha, who told TechCrunch that the earlier venture focused on enterprise AI applications and analytics tools for decision-making, while Hang Ten is an enterprise AI services company built around agentic code generation, reusable AI skills, and domain expertise.
Hang Ten is already working with customers including Siemens Gamesa Renewable Energy and Fresenius on AI-native project delivery, according to the company. Chaddha told TechCrunch that the company “just got started a month back” and already has customers, suggesting early enterprise demand for the AI-services model.
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Why investors are betting on an AI-first services model
Mayfield backed Hang Ten because of Sikka’s career experience and the belief that the startup’s AI-native model can scale differently from traditional services firms. “Traditional services scale linearly with headcount,” Mayfield said in a statement. “Hang Ten is built so its utilize grows with every project.”
The startup’s launch comes as investors reassess the outlook for traditional IT services firms. Analysts at Jefferies argued earlier this year that IT services may be among the first sectors to face meaningful AI disruption. Infosys chairman Nandan Nilekani, however, said this week that AI could expand the industry’s addressable market. Infosys itself has sought to position AI as an opportunity, telling investors this month that “AI-first services” could represent a $300 billion-$400 billion market by 2030.
Infosys shares are down over 35% this year, reflecting investor uncertainty about how AI will affect the economics of the industry.
Hiring and global expansion plans
Headquartered in the Bay Area, Hang Ten is hiring across delivery, engineering, sales, and leadership and plans to expand across multiple locations globally to meet enterprise demand. The early crew includes executives who have worked with Sikka for years across SAP, Infosys, and VianAI, according to their LinkedIn profiles. Among them are co-founders Navin Budhiraja (CTO), Sanjay Rajagopalan (chief design officer), and Tao Liu (senior vice president of forward deployed engineering).
In a blog post announcing the venture, Sikka said Hang Ten was already helping large enterprises “hang ten on the biggest wave of our lifetimes,” referencing the surfing term for riding a wave with all ten toes over the front of the board.
Frequently Asked Questions
What is Hang Ten Systems?
Hang Ten Systems is an enterprise AI services startup founded by former Infosys CEO Vishal Sikka. It uses AI-driven code generation, reusable AI skills, and domain expertise to help enterprises build, modify, and operate software, positioning itself as a challenger to traditional IT services firms.
Who invested in Hang Ten Systems?
The $32 million seed round was led by Mayfield, with a strategic investment from Aramco Ventures and participation from angel investors. Yahoo co-founder Jerry Yang is on the company’s board.
How is Hang Ten different from traditional IT services companies?
Traditional IT services scale linearly with headcount, but Hang Ten’s AI-native model is designed to increase utilize with each project, using agentic code generation and reusable AI skills to deliver services more efficiently.
What is Vishal Sikka’s background?
Sikka spent 12 years building enterprise software at SAP, served as CEO of Infosys from 2014 to 2017, and later founded VianAI, an enterprise AI startup. He also served on the board of Oracle.
