The Competition Commission of India (CCI) on Monday said that it has approved the acquisition of Essel Mutual Fund by an entity owned by former Flipkart co-founder Sachin Bansal’s BACQ via the ‘Green Channel’ route.
The Competition Commission of India (CCI) on Monday said that it has approved the acquisition of Essel Mutual Fund by an entity owned by former Flipkart co-founder Sachin Bansal’s BACQ via the ‘Green Channel’ route — introduced by CCI for reducing the time and cost of mergers and acquisitions within a certain threshold. The commission in a statement said that “the proposed combination filed in terms of Regulation 5A of the Combination Regulations (i.e. notice for approval of Combinations under Green Channel) shall be deemed to have been approved upon filing and acknowledgement thereof.”
Sachin Bansal had incorporated BACQ in December last year for building technology and offering digital services to businesses in various sectors including banking, financial services, insurance. The company is currently hiring software engineers, according to jobs posted on Linkedin. Bansal had left Flipkart earlier in 2018 by selling his reported 5.5 per cent stake in the company for around $1 billion after Walmart acquired a 77 per cent stake in Flipkart for $16 billion.
“The proposed combination raises no risk of any adverse effect on competition as per Section 6(1) of the Competition Act, and is also being submitted under the ‘green channel’ route as the parties do not have any, horizontal overlaps, vertical overlaps, or complementary businesses,” CCI said in its summary of the proposed deal.
Financial services are the key focus areas for Sachin Bansal even as the startup poster boy had reportedly made multiple investments this year mostly via debt in companies in the financial services space including micro-lending firm CRIDS, U Gro, Altico Capital etc. Bansal has also been among the key backers in the startup ecosystem having backed star companies including Ola, Ather Energy, Vogo, Bounce, Unacademy, Team Indus, Tracxn.