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From VOA Learning English, this is the Technology Report.
Two large Internet companies Facebook and Google recently purchased two India-based technology start-up companies. India is home to tens of thousands of computer software engineers and a growing information technology industry. The sales of the start-up companies are expected to influence others to launch businesses in the country.
Facebook closed its deal to buy Little Eye Labs in early January. Four engineers in Bangalore launched Little Eye Labs about a year and a half ago. The company builds mobile application software tools, the deal is set to be worth between 10 and 15 million dollars. It is the first time Facebook has purchased an Indian start-up company.
FILE - The Google logo is seen on a window at the company's headquarters in Mountain View, California.
Google bought the cyber security company Imperium. Imperium has offices in Bangalore and California. Media reports set the value of the deal at about $9 million.
The two deals are considered small but important. Experts say they will help increase interest in Indian start-ups among phone technology companies, such businesses often buy small companies either for the technology they develop or the ability of their creators.
Rutvik Doshi is with Inventus Capital Partners, an investment company in Bangalore.
"Till date none of these large U.S. companies had ever acquired anything in India to write home about. If they both turn out to be successful for these respective companies, they will start looking at India more seriously, in terms of there is more talent, there is more technology, and entrepreneurship happening here," said Doshi.
Indian software engineers have gained recognition around the world. Most of the engineers work for big Indian technology companies, but the number of Indian technology start-up companies is on the rise. Rising money for the start ups is not always easy.
Rajesh Sawhney help to create a company called GSF Accelerator, it provided financial support for Little Eye Labs. Mr Sawhney says most of the start-ups in India have worked on developing products for the home market. But he says the recent deals with Facebook and Google will lead investors and business people to widen their efforts.
"The time now is to encourage these start ups to start thinking global and that is what [the] internet allows today. We need to encourage our bright, young talent in India to start building products for world markets like Israelis have done or like U.S. start-ups do," said Sawhney.
Bangalore's successful technology services and outsourcing industry mostly does back office work for Western companies. But this work has put India on the technology map, the success that the industry has created will help open the door to future growth.
And that is the Technology Report from VOA Learning English. I'm June Simms.
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