After investing in California-based start-up TidalScale last week, premium technology services and consulting firm Infosys Limited (INFY - Free Report) has now forayed into Denmark with its focus on startup investments. The technology firm announced that it has invested DKK 14,920,000 in Danish startup UNSILO to boost its artificial intelligence and machine learning technology platforms.
Note that Infosys created a $500 million Innovation fund in 2015 with an aim to invest in innovative entrepreneurial ventures in domains related to the company’s core business. The recent investment in UNISLO comes as part of this scheme.
UNSILO Investment to Boost Machine Learning
Founded in 2012, UNSILO specializes in advanced text analysis. It uses a combination of machine learning and natural language processing to analyze huge text volumes. This, in turn, improves the speed and effectiveness of knowledge workers in a wide gamut of industries. Leveraging on Infosys’ client relationships, and project delivery & “go-to-market” capabilities, UNSILO will be able to expand its global footprint by offering services to a range of new industries.
Notably, UNSILO caters to major academic publishers like Springer Nature with its fully automated content enrichment technology that identifies descriptive concepts and phrases within any document. Meanwhile, there is pressing demand for building and maintaining consistent terminology and useful ontologies as scientific language is ever evolving.
UNSILO’s services are thus highly popular as clients often find it challenging to make meaningful interpretation of any large amount of unstructured text. Infosys believes UNSILO’s powerful semantic search engine, along with the best-in-class text intelligence, will allow its clients to enjoy the benefits of machine-learning technology and artificial intelligence.
Startup Investments to Drive Growth
Infosys has been continuously strengthening its core competencies by pursuing strategic collaborations and acquisitions. The company’s alliance strategy focuses on collaborating with partners to take advantage of the upcoming technologies in a mutually beneficial and cost-competitive manner. Moreover, the Innovation Fund is an integral component of its New and Renew strategy, intended to capitalize on the growth potential of disruptive technologies.
Other investments include two cloud-computing start-ups— Israel-based Cloudyn and CloudEndure, and two data-analytics start-ups — Waterline Data Science Inc. and Trifacta. We believe these strategic alliances bode well for the Zacks Rank #3 (Hold) company in the long-run and will help it in grabbing a higher market share.
Stocks to Consider
Some better-ranked stocks in the broader consumer discretionary sector include Barracuda Networks, Inc. , Amdocs Limited (DOX - Free Report) and CDK Global, Inc. (CDK - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barracuda Networks is a California-based security and storage solutions provider. The company has a striking earnings surprise history over the trailing four quarters, having beaten estimates in each of them, for a remarkable average of 525%.
Amdocs Limited is a leading provider of customer care, billing and order management systems for communications and Internet services. The company has a decent earnings history, with an average positive surprise of 2.8% over the trailing four quarters.
CDK Global provides integrated information technology and digital marketing solutions to the automotive retail industry. The company has an impressive earnings surprise history over the trailing four quarters, beating estimates all through for an average of 9.2%.
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