Flipkart co-founder Binny Bansal’s business consultancy startup xto10x Technologies will likely provide advisory services to Dunzo, a Bengaluru-based hyperlocal logistics firm.
Dunzo has approved a master services agreement that was proposed at an extraordinary general meeting (EGM) held at the Google-backed hyperlogistics startup in November.
“The company requires the services of advisory and consultancy in certain business related aspects and for the same, the company plans to enter into the master services agreement with XTO10X Technologies Pte Ltd., a Singapore based company, to avail the management/business advisory and consultancy services,” the EGM notice in a regulatory filing showed.
A separate regulatory filing, pertaining to an extract of the minutes of the EGM held with the board of the eponymous parent holding, had no mention of the approval or rejection of the particular resolution.
However, a source familiar with the matter confirmed the agreement of an advisory capacity between the two companies. Dunzo declined to comment on the matter.
“As per the agreement for the services rendered, the company shall pay part of advisory fees to the Advisor in the form of issuance of equity shares of the company,” the EGM notice further added.
The development was first reported by Inc42.
A year ago, Bansal teamed up with his former colleague Saikiran Krishnamurthy to launch xto10x Technologies, a Bengaluru-and-Singapore-based startup consultancy that aims to offer technology tools and a learning platform for startups to help them scale up rapidly.
Since his departure from Flipkart, Bansal has been one of the most active angel investors in India. He has also invested in Mumbai-based venture debt firm Alteria Capital’s maiden fund and is also an investor in 021 Capital, a venture fund launched by Sailesh Tulshan, the personal investment adviser to both Binny and Sachin Bansal.
Earlier this month, Bansal reportedly off-loaded some of his shares at Flipkart. His stake reduced from 3.8% to 3.3%. He had a 4.2% stake, when Walmart acquired the company in 2018.
Bansal, who quit his role as group CEO of Flipkart last year, is reportedly all set to launch a venture capital fund with a target corpus of $300-400 million. The Singapore-based fund, expected to be launched by the year-end, will focus primarily on Indian and Southeast Asian startups needing growth capital.