Flipkart floats new entity with plans to enter insurance business and VC funding

The entity, which was incorporated on December 7, may get into VC funding, insurance, other businesses.
Flipkart floats new entity with plans to enter insurance business and VC funding
Flipkart floats new entity with plans to enter insurance business and VC funding
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After launching private labels and its own smartphone, Flipkart has diversified into another new business, with the incorporation of a new entity ‘Sabin Advisors’, for its insurance business and also venture capital funding, reports Hindu Business Line.

Named after the first few letters of the co-founders’ names, a filing with the registrar of companies shows that the company was incorporated on December 7. In the filings, it does not specify any particular business but lists out various businesses as its objective, including a foray into online ventures.

HBL reports that the co-founders might be looking to route all their investments through Sabin and eventually look at other businesses.

Flipkart had earlier revealed intentions of entering financial products and insurance segments where it would do ‘solicitation and servicing of insurance policies by acting as a Corporate Agent’.

It has also been active in terms of investing in companies. In fact, the HBL report states that Sachin Bansal has so far invested in seven ventures with the amount invested coming up to $26 million, while Binny Bansal has invested in 17, with a total funding of $32 million. These are startups such as Unacademy and Ather Energy.

Flipkart too, has been on an expansion spree, especially after the massive funding of nearly $3 billion it raised in a round led by SoftBank. It launched several private labels expanding that business.  It launched SmartBuy, its in-house brand for electronics and electronic accessories, Perfect Homes for furniture, MarQ for large appliances and Billion – a made in India brand.

Flipkart also recently carved out separate unit to embrace artificial intelligence (AI) and machine learning (ML) to strengthen its business practices. Called AIforIndia, the entity will focus on the development and application of AI and ML to resolve any major or minor issues in its operations, from the supply end till the delivery end. Flipkart’s founders had said that they will invest millions of dollars into the AI entity, while also looking for suitable acquisitions.

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