Flipkart allocates $100M internal fund to boost early stage start-ups
Category: #retail  By Saif Ali Bepari  Date: 2019-03-26
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Flipkart allocates $100M internal fund to boost early stage start-ups
  • Indian origin ecommerce giant Flipkart to focus on investing in various startups including fintech, supply chain and SaaS
     
  • The estimated fund size has been capped at $60M - $100M
     
  • The company intends to obtain a 20-25% stake with its investment in return

The popular Indian e-commerce giant Flipkart has apparently set up an internal fund of around $60M-$100M. This initiative is directed to invest across different start-ups with a bid to strengthen its ecommerce operations. The venture would be handled by the company’s group CFO, Emily McNeal.

The Walmart-owned ecommerce giant is looking forward to investing around $2Mn - $3Mn in the start-ups working in various fields including financial technology, supply chain and SaaS. It intends to acquire a stake of 20%-25% in the respective start-ups with the investment.

According to Economic Times, McNeal further elaborated that they were delighted to support these early age start-ups that have been working on projects on next-gen technology that is focused around the ecosystem.

Flipkart is famous for its strategies of making investments via the M&A team. With this move, the company has made a structured move and placed early bets to leverage the dynamic technologies for its business. A source close to the matter reported that the company will set up an investment committee along with its M&A team to identify the right opportunities.

Flipkart has always been in the news for making acquisitions of big companies like Jabong, Myntra, PhonePe etc. It also considered investing nearly $25M in one of the AI-based start-ups in Silicon Valley in 2018. With this investment, the company is planning to invest in companies handling personal loans, finance and to SME’s for taking on the rival, Amazon.

The Indian e-retailer has been an active participant in lending space with the cardless EMIs. It has also collaborated with multiple banks as well as fintech startups to provide loan to the sellers.

The company aims to double down on the lending space. With this move, Flipkart has clearly put forward its plan of leveraging the advanced technologies to streamline the business.



About Author

Saif Ali Bepari

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Saif Ali Bepari

Saif Ali Bepari currently works a content writer for Market Size Forecasters, Algosonline, and numerous other platforms. A Computer Science graduate who has a zest for writing over coding, he has previously dabbled into technical and creative writing. He now pens down...

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