E-commerce giant, Flipkart, has started its own corporate venture capital (CVC) firm and is planning to invest in various early-stage startup companies in the country. Despite announcing the launch of the venture fund, the Walmart-owned company is yet to divulge any details about the size of the fund. However, industry sources indicate that the size of the fund will be about $100 million.
Flipkart is planning to invest in various fintech companies, payments firms, e-commerce firms, etc., using this venture capital fund. Many experts in the industry believe that Flipkart has started this venture to simplify the procedures involved in startup investments. Most companies start venture investments from their balance sheets, but this process requires a certain approval cycle for investment decisions.
It is also worth noting that Flipkart founders Sachin Bansal and Binny Bansal are currently working on their own venture funding activities following their exit from Flipkart.
Emily McNeal, group chief financial officer at Flipkart, stated that Flipkart is a pioneer when it comes to setting up the e-commerce ecosystem in India. The e-commerce industry thrived in India during the last decade, and Flipkart played an instrumental role in various aspects of the industry including supply chain, logistics, technology, after–sale support, etc.
She also added that the startups that are entering the market are focusing on solving their own unique challenges. In the long run, this could help bring many other companies into the digital space and help the country’s ‘Digital India’ program.
Flipkart has acquired many companies in the past to consolidate its customer base. Some of its notable acquisitions including Myntra, PhonePe, Jabong, etc. The company has also made investments in various startups including Rivigo, GreyOrange, MapMyIndia, etc. However, this is the first time that Flipkart has launched its own venture capital firm for making investments in startups.