India-based group buying company Jasper Infotech, has reportedly set up a $2m fund to invest in marketing services companies in the country, according to local news provider VC Circle.
The Jasper Marketing Innovation Fund will invest between $50,000 and $250,000 for minority or majority stakes, VC Circle added.
Kunal Bahl, founder and chief executive of Jasper, however, said it was primarily looking for majority stakes. He added: "This space has exploded in the past 2.5 years and its sohard as a company to do everything internally and with venture capital firms being risk-averse and angel investors being draconian in their terms and micromanaging we see a need for us as a business and a gap in the market. Jasper can be the United Nations of market service entrepreneurs."
Jasper Infotech is backed by India-based venture capital fund IndoUS Venture Partners and operates in 30 cities across five countries and more than 30,000 retailers.
"We realise that we are in a position to support these entrepreneurs to get to scale, using capital as well as our know how and relationships. Typically these businesses do not require a lot of capital but there is just a funding gap," said Bahl to VC Circle.