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    Fosun closes deals across sectors; Leads $12 million round in LetsTransport

    Synopsis

    VC arm invests $5 million in Bengaluru-based firm marking its second bet in logistics sector.

    ThinkstockPhotos-87179973ThinkStock Photos
    Fosun’s investment in LetsTransport is its second in the country’s techbased logistics sector, having earlier backed Gurgaon-based logistics major Delhivery in March last year.
    NEW DELHI: Fosun International has closed a clutch of investments in India across the personal finance, logistics, technology and content segments, marking the Chinese diversified conglomerate’s first set of fresh transactions in the country this year.

    The Shanghai-headquartered company, which has a market capitalisation of $14 billion and has primarily invested in India through its venture capital arm Fosun RZ Capital, has led a $12 million investment round in intracity logistics venture LetsTransport.

    Fosun RZ Capital, which manages assets of about $1 billion globally, has invested about $5 million in the Bengaluru-based company, which is believed to be in late-stage discussions also with two other investors of Japanese origin.

    Tej Kapoor, India head and managing director of Fosun RZ Capital, confirmed the development but declined to share the names of the two potential incoming investors.
    Fosun’s investment in LetsTransport is its second in the country’s techbased logistics sector, having earlier backed Gurgaon-based logistics major Delhivery in March last year.

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    Fosun has also closed three seed-stage transactions of about $1million each—its first set of early-stage bets in the country where, till now, it has largely done mid- and late-stage and public equity investments.

    ET was the first to report, in its June 14 edition, that Fosun, which also counts travel search venture Ixigo, fintech venture Kissht, and online travel operator MakeMyTrip in its India portfolio, was looking to back ventures that are far earlier in their life cycles.

    “Fosun does seed-to-IPO investments. We have had similar business models scaling very successfully in China, and are applying the same knowledge and thesis in India,” Kapoor told ET.

    Fosun has invested in personal finance venture Perk Finance, which focuses on offering short-term and small-ticket loans to salaried professionals in small and medium enterprises to meet their monthly expenses. Based on a consumer’s payment record, the company will also look to sell a variety of financial products.

    The Chinese investor has also backed Gurgaon-based content platform Mylo, a pregnancy and baby-related community-focused app, and Bengaluru-based Kredily, a software-as-a-service based human resources management tool that also works with SMEs.

    “We see the investments in Mylo, Perk Finance and Kredily as incubation and seed plays, where the founders continue owning a majority stake in the ventures, while Fosun provides them with mentoring, tools and capital that will allow them to disrupt the market and emerge as leaders in their respective segments,” Kapoor said.

    Kapoor also said the strategic investor is in discussions to close at least three more deals—mid- and growth-stage investments—in Asia’s third-largest economy. He declined to provide a time-frame for these.

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