Wipro ups stake to 26.1% in cloud solution firm Drivestream

Move is part of Wipro's strategy to drive global investments in technology start-ups

Wipro, the country's third-largest information technology (IT) services firm, has increased its holding to 26.1 per cent in US-based cloud solution company, Drivestream.

The Bengaluru-headquartered company said in a filing with BSE that it paid $8,09,690 in cash to buy additional stocks issued by Drivestream, including 19,679 Series B preferred stocks and 27,865 common stocks.

Wipro first picked up an undisclosed stake in 2015 for $5 million. Drivestream, an IT consulting firm that specialises in Oracle cloud services, reported revenues of $20.5 million in 2016 as against $23 million in 2015.

Wipro said this investment would allow customers of both companies to benefit from Drivestream's Oracle cloud solution and Wipro's services. Drivestream, which was established in 2001, has around 73 employees. The stake hike is also part of Wipro's strategy to drive global investments in technology start-ups wherein it has earmarked $100 million through a segment called Wipro Ventures.