Binny Bansal set to launch $400 Mn VC fund for startups

There are very few entrepreneurs who are very much aggressive when it comes to supporting and investing in startups. If we make a list of such entrepreneurs, Flipkart former group CEO and Chairman Binny Bansal would undoubtedly find a place in it.

Bansal has been over past few months selling his shares, since Flipkart take over by US giant retailer in a $16 billion deal in August 2018, to invest in startups.

Last week, Bansal sold his shares worth about $14 million to Tiger Global, and now he is planning to launch worth $400 million venture capital fund to support startups.

Bansal may invest about 10-20% of the fund and bring other investors on board, said a TOI report quoting sources close to the development. He is reported to be General Partner (GP) of the fund, which will be focused on startups in India and Southeast Asia.

Bansal has also roped in former Flipkart executive Rajneesh Baweja to take care of financial and legal aspects of the fund.

The fund is yet to be named.

The development is also important as Bansal, over the years, has been transitioning from being an entrepreneur to a full-time investor.

Soon after his departure from Flipkart in November last year, Bansal started another venture to help growth-stage startups – xto10x Technologies and continue to invest in startups across segments.

In recent months, he backed Acko, SporDraft, SigTuple, House of Masaba and Increff. Bansal led series C round worth $65 million in Amazon-backed Acko with $25 million in his capacity.

In July, Bansal also led final tranche in venture debt fund Alteria Capital maiden fund worth Rs 960 crore.

Meanwhile, he has also reportedly shifted his base to Singapore, which is known for being flexible in terms of tax structure, infrastructure, and policy for startups. The investment policy, unlike the Indian FDI policy, is more flexible in Singapore.