Binny Bansal to Launch a Venture Capital (VC) Fund Worth USD 300-400 million
Flipkart co-founder Binny Bansal is packing up plans to launch a venture capital (VC) fund with a target corpus of USD 300-400 million. This initiative will focus on startups who need growth capital, said two sources familiar with the development.
Bansal is likely to roll out the new fund by the end of the year and it will be based out of Singapore. He
will be a general partner running the fund and will also come in as one of the anchor investors. The fund will primarily be focused on startups in India, but will also look at backing entrepreneurs in Southeast Asia. The name of the fund could not be ascertained till the time of going to the press.
"Bansal is likely to invest 10-20 percent of the fund's corpus and will start bringing on board other investors soon," said one of the sources mentioned earlier, adding that there could be other backers like a fund of funds and family offices joining as anchor investors. Bansal sold part of his stake in Flipkart - where US retail giant Walmart acquired 77 percent for USD 16 billion last year - for USD 200-250 million. But he still retains a stake of over 3 percent. The total value of his Flipkart holding at the time of the Walmart sale was pegged at about $1 billion.
Bansal has already started putting together a team, roping in former Flipkart executive Rajneesh Baweja, to handle finance and legal functions at the fund. Bansal, who moved base from Bengaluru to Singapore earlier this year, did not respond to queries sent by TOI.
The move by Bansal to turn into a full-time investor will be one of the rare transitions by successful tech entrepreneurs in the country, which is a norm in more mature startup ecosystems like China and the Silicon Valley.