Wipro To Acquire Minority Stake in SDVerse with 5.85 Million Investment By CIOTechOutlook Team

Wipro To Acquire Minority Stake in SDVerse with 5.85 Million Investment

CIOTechOutlook Team | Wednesday, 06 March 2024, 02:30 IST

Leading IT firm, Wipro said it has contributed $5.85 million (Rs 48.5 crore) to buy a 27% stake in SDVerse, an automotive software marketplace, alongside General Motors (GM) and Magna. Wipro, GM and Magna have collaborated to foster a B2B deals stage for trading car programming, the IT major said in an administrative documenting.

Wipro will put $5.85 million in real money in the organization and the exchange is supposed to be finished before the end of March 2024. “Wipro’s step-down subsidiary, Wipro IT Services LLC has entered into an agreement with General Motors and Magna International, who will hold 46% and 27% stake in SDVerse, respectively,” the filing said.

Prashant Gulati has been named CEO of SDVerse compelling March 5, 2024. As of now, Gulati is the chief strategy officer at Application Orchid AI and has 20 years of experience with the innovation automotive industry with a stretch for KPIT Technologies.

“Investment into SDVerse strengthens Wipro’s positioning as a leader in the software defined vehicle/cloud car engineering services. The transaction is in alignment with Wipro’s strategic focus on embedded software for the automotive sector,” the company added.

SDVerse fills in as a 'matchmaking' digital platform among purchasers and dealers of implanted car programming that spotlights on expanding straightforwardness and decreases failures in software programming and improvement.

“The market for automotive software is expected to nearly double this decade, potentially outpacing the growth of software development talent pools. The current paradigm for software sourcing will likely not be able to overcome this growing gap without sacrificing both profitability and the auto industry’s aspirations for software-defined vehicles. SDVerse addresses these pain points, offering a wide range of benefits across the industry,” said Harmeet Chauhan, global head Wipro Engineering Edge.