Wipro Partners with AI Startup Factory to Advance Agent‑Native Software Development Globally

Wipro has announced a strategic partnership with U.S.-based Factory to integrate agent-native software development into its global enterprise offerings, leveraging AI-powered “Droids” to automate large portions of the software lifecycle. Wipro Ventures also invested in Factory’s latest funding round, signaling a deeper commitment to agentic AI.

Factory is a U.S.-based startup founded in 2023 that specializes in agent-native software development, enabling enterprises to delegate large portions of the software lifecycle to AI agents called “Droids.” It has quickly gained traction by embedding OpenAI’s reasoning models into its platform, helping organizations accelerate engineering cycles and reduce development bottlenecks.

Notably, Wipro Ventures, the corporate investment arm of Wipro, participated in Factory’s recent funding round. Besides Wipro, the San Francisco based startup is backed by investors including Sequoia Capital, NEA, NVIDIA, J.P. Morgan, Abstract Ventures, Mantis VC, SV Angel, and BoxGroup.

Factory uses OpenAI’s reasoning models (o1, o3‑mini, GPT‑4o) to go beyond code generation, enabling agents to understand, retrieve, and reason through complex systems.   

Key Highlights of the Partnership

• Core Objective: Help enterprises operationalize agent-native development across engineering organizations worldwide.
• Technology: Factory’s platform uses AI agents called Droids to handle:
  • Feature development
  • Code refactoring
  • Migrations
  • Testing
• Integration: Wipro will embed Factory’s capabilities into its WEGA agent-native delivery platform, enhancing the Wipro Intelligence suite of AI-powered solutions.
• Investment: Wipro Ventures participated in Factory’s recent funding round, strengthening financial and strategic ties.

Why This Matters for Enterprises

• Efficiency Gains: Delegating repetitive and complex tasks to AI agents accelerates delivery cycles while maintaining engineering standards.
• Scalability: Enterprises can scale development across global teams without proportional increases in human resources.
• Consistency: AI-driven automation ensures architectural integrity and compliance with coding standards.
• Competitive Edge: Positions Wipro as a leader in agentic AI at a time when enterprises are cautious about tech spending but eager for productivity boosts.

Strategic Context

• Market Timing: Wipro announced this move amid margin pressures in Q3 FY26, where revenue rose 5.5% YoY to ₹23,500 crore, but net profit fell nearly 7% due to higher employee costs and cautious enterprise spending.
• AI Push: This partnership reflects Wipro’s broader strategy to deepen its AI-led engineering capabilities and differentiate itself in a competitive IT services market.

Comparison Table: Wipro–Factory Partnership Benefits

Aspect	Benefit to Enterprises
Automation	AI Droids handle lifecycle tasks (development, testing, migrations).
Integration	Embedded into Wipro’s WEGA platform for seamless adoption.
Investment	Wipro Ventures’ funding ensures long-term collaboration.
Efficiency	Faster delivery cycles, reduced manual workload.
Consistency	Maintains engineering standards and architecture integrity.
Global Reach	Operationalized across worldwide engineering organizations.

Risks & Considerations

• Adoption Curve: Enterprises may face challenges in retraining teams to work alongside AI agents.
• Cost vs. ROI: Initial integration costs could be high, requiring careful ROI analysis.
• AI Governance: Ensuring compliance, transparency, and ethical use of autonomous agents will be critical.