SUMMARY
Sachin has invested INR 200 Cr in the form of non-convertible debentures
The deal is said to have a two year repayment period
Piramal might use the funding for its upcoming fintech venture
Flipkart cofounder Sachin Bansal has reportedly infused INR 200 Cr (around $29 Mn) into Ajay Piramal owned Piramal Enterprises. The funds were routed through non-convertible debentures issued by Piramal Enterprises.
According to a media report citing an anonymous source, Piramal Enterprises will use this funding for its financial services business. The non-convertible debentures subscribed by Sachin Bansal are said to carry an interest coupon of about 9.5% and a two year repayment period.
Piramal Enterprises is the flagship company of the Piramal Group. The company contributes to three broad sectors including pharma, healthcare information management, and financial services.
Last week, Piramal Enterprises was reported to be finalising a massive INR 9600 Cr (around $1.4 Bn) funding deal with SoftBank along with one other investor. Reports had then also said that Reliance Jio and Piramal Group are planning to start up a joint venture for consumer lending and fintech.
Digital lending is one of the fastest growing segments in the India’s fintech space. A BCG report has predicted the digital lending industry will touch $1 Tn mark in the next five years.
Across board, fintech startups have come up with various digital lending models such as the peer-to-peer lending model of Faircent, NeoGrowth’s point of sales transactions based lending, bank and fintech partnerships model of Indifi, and the marketplace model of Paisabazaar.
Even though there is no clarity on the business model of Piramal’s lending venture, with Sachin Bansal coming onboard along with the possibility of a massive investment from Japanese conglomerate SoftBank and the support of Indian telecom major Reliance Jio — Piramal’s lending plans do seem promising.
Earlier in February, Sachin Bansal was also reported to be in talks with financial experts on the potential to launch a new venture in the fintech sector. He had also reportedly met Reserve Bank of India executives to figure out the eligibility requirements for starting a bank.
Sachin Bansal Startup Investments
Sachin Bansal marked a huge exit from Flipkart, when the company was acquired by US retail giant Walmart in 2018. He raked up millions and will keep receiving till 2020. The earnings coupled with years of connections in the Indian startup ecosystem, Bansal has been proving beneficial to the Indian entrepreneurs with his investments and mentorship.
Earlier this month, BAC Acquisitions, a venture fund cofounded by Bansal, had invested INR 10 Cr ($1.45 Mn) in an electric two-wheeler rental startup, Bounce. According to the Ministry of Corporate Affairs filings accessed by Inc42, Bounce had issued 1 Lakh non-convertible debentures to BAC Acquisitions.
Prior to this, another electric vehicle startup Ather Energy had raised a $51 Mn funding round led by Flipkart cofounder Sachin Bansal’s who poured in $32 Mn. Also in February, Indian ride-hailing major Ola has raised $92 Mn from the Flipkart cofounder Sachin Bansal.
