AI software modernization startup Hang Ten Systems raises another $53 million from Xora
Startup Hang Ten Systems, founded by former Infosys CEO Vishal Sikka, has raised another $53 million from Xora (Temasek) five weeks after a $32M seed round; total funding is $85M. The company offers AI consulting and software modernization for large enterprises.
Startup Hang Ten Systems, founded in May 2026 by former Infosys CEO Vishal Sikka, has raised another funding round of $53 million. The round was led by Xora, an investment platform of Temasek focused on early-stage startups, just five weeks after the previous round of $32 million closed. Total funding for the startup thus reaches $85 million. The metadata source labels the new round as Series A, while the article describes it as an expansion of seed funding ("expanded its seed funding") — the sources differ on this terminology. Alongside Xora and the fund Mayfield, which led the previous round, participants also included Aramco Ventures and individuals Lip-Bu Tan (CEO of Intel), Sanjay Mehrotra (CEO of Micron) and Yahoo co-founder Jerry Yang, who is also a board member of the startup.
Hang Ten Systems advises large enterprises (typically with annual revenue above $10 billion) on AI strategy and helps them build and modernize software. According to founder Sikka, AI has made the coding phase itself virtually free and instantaneous, shifting the focus of software development toward defining requirements and verifying whether the system works as specified. The company says it is in discussions with 21 large enterprises, its customers include Fresenius Kabi, Saudi Aramco and Siemens Energy, and it has secured several contracts worth millions of dollars, with prospects for contracts worth tens of millions.
The startup has 20 to 25 employees in the US, the Middle East and Australia, and plans to hire in Europe and India. According to co-founder Sanjay Rajagopalan, the company replaces teams of around 30 people with teams of two to four people on some projects and promises customers a tenfold improvement in costs or speed, while final quality checks are still handled by customers or independent parties. The company says it has received serious acquisition offers from large companies, which it declined. Sikka previously co-founded startup VianAI (2019), which raised $50 million in seed funding and, in 2021, $140 million in a round led by SoftBank Vision Fund 2; Sikka left VianAI in April 2026.
Why it matters
The rapid increase in funding (two rounds within five weeks, totaling $85 million) shows investor interest in companies promising significant reductions in software development costs through AI. For large enterprises, this means a new independent provider of AI strategy and systems modernization as an alternative to traditional systems integrators; for software suppliers and consulting firms, it represents competition that, according to its own claims, can replace dozens of people with a team of four.
Two audiences, two different impacts
What this means
For individuals
The company says it replaces teams of dozens of people with teams of two to four, suggesting pressure on the size and structure of development and consulting teams at enterprises undertaking such projects.
More practical updates →For a business
A newly funded player is entering the AI consulting and enterprise software modernization market, promising companies with revenue above $10 billion costs an order of magnitude lower and faster delivery than traditional systems integrators, expanding the choice of suppliers for this type of project.
Sales and marketing More business impacts →Check the original
Event sources
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