The e-commerce company, Flipkart has introduced an internal fund to endow money in startup firms, according to anonymous sources, as reported by the Indian daily news.
With this move, the Walmart-backed company will uphold startups across the supply chain, SaaS, financial technology and various other areas. The newly initiated fund is calibrated to be $60 to $100 million and will be headed by Emily McNeal, Group CFO at Flipkart.
The money for the fund will be garnered from the etailers (Flipkarts) balance sheet and further, viewed in the cut cheques of the company nearly $2- $3 million, as reported by the Indian daily news.
As the Mergers and Acquisitions team (MA team) of Flipkart is helping the company in acquisition and investment, thus, the newly introduced fund turns to be a well-organized approach to stake money at lesser valuations to escalate technologies for its businesses. More so, the etailer company will set up an investment group alike the investment fund and increment its MA team so as to explore further opportunities.
The MA team of Flipkart is reinvigorated with novel talent as well as leadership, as said by an anonymous source.
The preliminary size of the fund is between $50-$60 million, but it could go up depending on their appetite for investment, said the anonymous source and he further added, They will look to pick up anywhere between 20-25 per cent stake in these early-stage companies in return,