DPIIT and Flipkart Sign an MOU to Support and Invest in Indian Startups

Nitin Konde, Varun Bhardwaj

Dec 11, 2024 — 3 min read

DPIIT and Flipkart Join Hands to Boost Indian Startups

E-commerce giant Flipkart has teamed up with the Department for Promotion of Industry and Internal Trade (DPIIT) to invest in and coach up-and-coming entrepreneurs in the nation in an effort to support the domestic startup ecosystem. Flipkart will support early-stage entrepreneurs through Flipkart Leap and Ventures, its startup accelerator, in accordance with the memorandum of understanding (MoU) that the two parties signed. Through the accelerator, the Walmart-backed company provides seed funding to Series A startups, with cheque sizes ranging from $200K to $500K. According to a statement from the e-commerce giant, Flipkart will also assist the up-and-coming businesses with the development of their prototypes and with entering foreign markets by offering infrastructure support.

Flipkart Claims To Have Supported 20 Startups Till Now

The organisation claims to have sponsored 20 startups through its accelerator since its founding in 2022, while it did not specify how many startups it plans to back. It has made investments in a number of firms, including FlexiflyMe, Dopplr, and NeuroPixel.AI. The accelerator fund has a $100 million size. According to Rajneesh Kumar, chief corporate affairs officer at Flipkart, the company hopes to use its $100 million venture fund to help entrepreneurs make ground-breaking discoveries that will influence technology and business in India and beyond.

In contrast, the DPIIT will give selected entrepreneurs access to industry reports, research papers, datasets, and other studies produced by government agencies for market research and expedited patent applications submitted by startups, as well as connections within the Startup India ecosystem. The innovative and entrepreneurial spirit that propels country's development is embodied in India's startup ecosystem. According to DPIIT director Sumeet Jarangal, this Memorandum of Understanding would strengthen India's position as a global innovation leader by accelerating the conversion of ideas into meaningful solutions by leveraging the strengths of both parties.

Startup India's Joint Secretary, Sanjiv Singh, underlined the importance of the Memorandum of Understanding in promoting an innovative and entrepreneurial culture, which are essential for India's development. According to him, the collaboration would improve India's standing as a worldwide leader in innovation by fostering an atmosphere that would enable companies to turn their concepts into useful solutions. He added that this partnership would give startups the boost they need to reach new heights and make significant contributions to the country's technological and economic development.

DPIIT Forging Partnerships to Strengthen Startups’ Ecosystem

In recent months, DPIIT has formed four partnerships to support the Indian startup ecosystem. It joined together with HCLSoftware in October to advance its manufacturing incubator programme. Additionally, it established a business incubator in Gujarat in collaboration with Johnson Controls-Hitachi Air Conditioning India. Additionally, last week, the DPIIT teamed up with Moglix, a B2B e-commerce platform, to support manufacturing firms. The changes occur at a time when the startup scene in India is expanding rapidly. As of October 31, 2024, DPIIT-registered businesses have generated over 16.67 lakh direct jobs in over 55 industries, according to a statement made earlier this month by Commerce Minister Piyush Goyal.