BusinessE-Commerce

Binny Bansal turns angel investor for Acko Insurance after buying out of Flipkart

Flipkart is India’s celebrated e-commerce website. It was founded in 2007 by Sachin Bansal and Binny Bansal. The former Amazon employees took the same route as their employers. They started selling books online and when that earned them some good bucks they shifted their focus to other products. They started increasing products after products and now sell around 80 million of them on their website. It has been a joy ride for the company and its couple of dreaming founders.

After smashing all the records they were approached by an American giant. The offer was something the founders couldn’t decline and within months there was news about Flipkart being bought by Walmart. This deal flushed out Sachin Bansal almost immediately and Binny Bansal had to step down because of some scandalous behavior but remained on the board with his 4-4.5% stake. However, since Walmart’s acquisition, Flipkart has grown into different businesses.

They have focused more on their subsidiaries such as PhonePe and forayed deep into that business. Recently they developed PhonePe into wealth management application as well. Their market study strategies have been brilliant in the last couple of years given that it has gone through some major managerial changes at the helm.

That said, Binny Bansal, the man who co-made Flipkart that it is today is working his way out of his dream. He is looking to strike a deal with Walmart. Binny is rumored to receive around $850 million in cash as his buyout amount. However, this payment will appear in his bank after August of 2020. But Binny has triggered his resignation in November and so a minimum amount $100 million will be paid to him upfront.

That said, the amount of money Binny Bansal is going to get is staggering. However, Bansal has already started planning for it. He recently started his new started in the name of Xto10X Technologies. Bansal has teamed up with his college friend Saikiran Krishnamurthy to start this company which will provide technology tools, consulting services and learning to the new-age startups.

Bansal has not stopped there. He has also turned into an angel investor. He recently invested $25 million in Acko. Acko is an insurance startup and has earned the tag of being Binny’s largest investor. Acko also has some serious backing in many different investors. This funding from Binny is a part of a larger investment round of around $60 to $80 million. It has raised around $42 million till today.

However, Acko first went to Sachin Bansal with whom they negotiated for quite a while. The negotiations had reached a very advanced stage but weren’t going any further. After the breakdown of that link, they turned to the other Bansal and managed to get a deal done. Acko, headed by Varun Dua is also funded by Accel Partners, SAIF Partners, Catamaran Ventures by Narayan Murthy.

– Unmesh Phule

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