Flipkart sets up fund to make strategic investments in early-stage companies - ETtech
E-comm major earmarks $60-100M to back companies across fintech, supply chain, SaaS startups
- While Flipkart has been investing in and acquiring startups through its Mergers & Acquisitions (M&A) team, this is a more structured approach by the online retailer to take early bets at lower valuations to leverage technologies for its businesses.
- The online retailer will put together an investment committee similar to an investment fund and bulk up its M&A team which will scout for these opportunities.
- People in the know said that Flipkart which has made acquisitions like Myntra, Jabong, PhonePe, along with investing in many other companies, may use the funds to specifically target startups in areas like personal loans, check out finance and those which can lend to SMEs.
- “Amazon has moved rapidly on the lending business, they have started cardless EMIs and also partnered with multiple banks and large fintech startups to extend loans to their sellers,” said one of the persons quoted above.