Binny Bansal: Flipkart to reduce investments in startups
After announcing that a greater focus will be put on fashion for Flipkart following the Walmart acquisition deal, Flipkart’s CEO Binny Bansal has announced that the business will be investing less in startup businesses.
At LetsVenture and Accel Partners India’s Fireside Chat event at Vivanta by Taj in Bengaluru on July 7, Flipkart’s Group CEO Binny Bansal and Board Member Subrata Mitra held a discussion on the future of the business in the wake of the Walmart acquisition deal. At the event, Bansal stated that, moving forward, the business will no longer proactively search for companies and startups to invest in, unless it is part of a strategic business plan.
“Flipkart will look at investing less in companies,” said Bansal at the event. “There was a time probably when there was more cash than we needed. We have been investing in non-series A [funding rounds].”
Previously, Flipkart was actively looking for startups to invest in and has pumped money into several nascent businesses such as F7, a Silicon Valley-based artificial intelligence (AI) company, Nestaway, a home rental business, and WeHive, a peer-to-peer marketplace among others. Earlier in the year, the business announced that it was searching for at least one other AI company to invest $25 million (Rs 166.3 crore) in but Bansal did not clarify whether or not his latest statement affects this plan.
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