E-commerce firm Flipkart on Tuesday launched a fund to back early-stage start-ups in the country.
The fund will target budding companies working in areas related to e-commerce, financial technology, payments and complementary spaces, the e-commerce firm said in a statement. The size of the fund will be about $60-100 million and it will be led by Flipkart Group Chief Financial Officer Emily McNeal, The Economic Times reported.
The report said that the capital for the fund will come from Flipkart's balance sheet and the e-tailer will put together an investment committee similar to an investment fund.
The objective of the fund is to build the ecosystem with world-class founders and ideas, it added.
"With this initiative, we're delighted to support such innovative early-stage start-ups that are working on next-gen technology in and around our ecosystem. The aim is to seed innovation that is good for India and which promotes digital inclusion in a variety of spaces, by enabling start-ups to focus on bringing their ideas to life and scaling them," Flipkart Group Chief Financial Officer Emily McNeal said.
The company said that with over 400 million internet users, tech adoption in the country is at an inflection point, and millions of people from tier-II and III cities and villages are expected to join the digital stream in the next few years.
"The existence of some barriers in this journey related to trust, affordability, access etc., are some of the friction points that start-ups are trying to solve through innovations here in the country," the statement said.
Last year, US-based retail giant Walmart completed a deal with Flipkart and now holds a 77 percent stake in the Indian e-commerce major.
Founded in 2007, Flipkart has led India’s eCommerce revolution. The company has grown rapidly and earned customer trust, leveraging a powerful technology foundation, including artificial intelligence, and emerging as a leader in electronics, large appliances, mobile and fashion and apparel.
With PTI inputs
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Updated Date: Mar 27, 2019 15:04:12 IST