Wipro Sets up INR 200 Crore Venture Fund to Infuse Money in Consumer Brands
In a bid to enrich startups in the consumer segment, Wipro’s FCMG division, Wipro Consumer Care and Lightning have initiated a venture fund to financially support the consumer-concentrated startups in India. Reportedly, Wipro Consumer Care and Lightning have allotted INR 200 crore to its venture fund, Wipro Consumer Care-Ventures.
The new venture fund will be concentrating on the firms following a different idea in which both parties can imbibe leveraging their fortes and increase each others’ value, reported The Economic Times.
Reportedly, the venture fund will plough in 10 Indian startup firms working in the home care as well as personal sphere. Further, Wipro Consumer and Lighting is planning to own a minor stake in approximately three firms. Nonetheless, the firm is not opting for long-term investment and will infuse them with a proposition of exiting those firms after five years, reported Inc42.
“We want to exit in around five years and monetize our investment and hence will take only a minority stake of around 20-30 per cent in these three companies,” Vineet Agrawal, CEO of Wipro Consumer Care & Lighting, said in an interview with Inc42.
Wipro’s Fund--Wipro Consumer Care-Ventures
Wipro Consumer Care and Lighting operate mainly in personal care, skin care, home care, and lighting categories. The company intends to invest in new-age start-ups in digital, e-commerce, and other ventures that adopt an innovative approach to reach consumers, The Economic Times reported citing the company’s official statements.
The fund will primarily infuse money in firms based in India, as well as Southeast Asia, that have a stable business model and skilled entrepreneurs. The fund will not ascertain startups that are looking for angel investors.
They will look at companies that have annual revenue of more than INR 1 Cr and will not invest like an angel fund, Agrawal said in an interview with Inc42.
Other Companies Investing in Startups
Similar to Wipro, several other firms are rigorously infusing money in the startup ecosystem. Times Internet, Reliance, Walmart, Microsoft, Hero Group and Google are active investors in the startup ecosystem.
In July this year, the South Korea-based technology firm, Samsung introduced a growth plan focused on India. The tech giant initiated its plan coupled with its VC division, Samsung Venture Investment Corporation (SVIC).
It was reported that the Samsung-led VC fund will infuse in businesses focusing on innovative technology, thus, anticipating to form new growth plans.
This year February. Indian FMCG firm, Britannia proclaimed its strides to initiate a separate unit and club along with it for 6 months to infuse in startup firms throughout various platforms and categories.
