Wipro Enterprises' FMCG brand Wipro Consumer Care and Lighting has set aside Rs 200 crore (USD 28 million) for its venture fund — Wipro Consumer Care Ventures — for investing in start-ups of consumer brands space from India and Southeast Asia.
However, the company is looking at investing in three-four start-ups every year. According to CEO Vineet Agrawal, the potential of the start-up and Wipro’s ability to add value are the two main criteria they are looking at. "A start-up is coming to us because they can get more than what a regular financer can offer," he said, adding the company is not entering China because of issues such as language barriers.
The company intends to invest in new age start-ups in digital, e-commerce, and other ventures that adopt an innovative approach to reach consumers. Within consumer brands business, the primary area of focus would be categories that are of interest to the company such as personal care, skin care, home care, and lighting categories.
In 2017, the USD 1 billion plus arm of Wipro Enterprises had made its first investment in e-commerce brand Happily Unmarried, which sells men and women grooming products. Wipro Consumer Care and Lighting is now among the fastest growing fast moving consumer goods (FMCG) businesses in India with a strong presence across segments in India, South East Asia, and the Middle East.
Similarly many other corporates have also taken the venture fund route to support the start-up ecosystem including the likes of Google, Walmart, Alibaba, Microsoft, Reliance, Hero Group, and Times Internet. Earlier in July, South Korean tech giant Samsung has started a new plan in India with its venture capital arm, Samsung Venture Investment Corporation (SVIC).
SVIC will invest in future-oriented businesses based on new and innovative technologies. Britannia has plans to set up a separate entity and team over the next six months to invest in start-ups.
Company to invest across new age segments
The company intends to invest in newage start-ups in digital, e-commerce, and other ventures that adopt innovative ways to reach out consumers. The primary area of focus would be categories such as personalcare, skincare, homecare and lighting