Flipkart has $60-100 million to back early-stage firms

BENGALURU/MUMBAI: Flipkart has set up an internal fund to invest across early-stage startups, in the first such move by the ecommerce major, according to three people familiar with the matter. The Walmart-owned etailer plans to back young companies across financial technology, supply chain, SaaS, among other strategic areas as it looks to get a foothold in these startups. The fund is estimated to be $60-100 million in size and will be led by Emily McNeal, the group CFO of Flipkart.
The capital for the fund will come from Flipkart’s balance sheet and will see the etailer cut cheques of about $2-3 million, ET has learnt.
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.