SoftBank to invest $2.5 bn in Flipkart? The biggest ever investment in Indian internet space
- Shekhar Chs
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SoftBank missed out on getting a piece of Flipkart when its deal to acquire Snapdeal, the e-commerce firm which SoftBank backed in 2015, fell apart last month, but the Japanese tech giant has finally got there.
Flipkart today confirmed that SoftBank has invested in its business, via its $100 billion Vision Fund.
“This is a monumental deal for Flipkart and India. Very few economies globally attract such overwhelming interest from top-tier investors. It is recognition of India’s unparalleled potential to become a leader in technology and e-commerce on a massive scale. SoftBank’s proven track record of partnering with transformative technology leaders has earned it the reputation of being a visionary investor,” Flipkart co-founders Binny Bansal and Sachin Bansal said in a joint statement.
Citing sources, Economic Times reported that the deal is around the $2.5 billion mark. SoftBank and Flipkart both have not comfirmed the amount.
Flipkart said the SoftBank investment, which is the biggest-ever private investment in an Indian technology company, will make the Vision Fund one of the largest shareholders in the online retailer.
The investment is part of the latest financing round into Flipkart, which had raised $1.4 billion from Tencent, eBay and Microsoft in April.
“We want to support innovative companies that are clear winners in India because they are best positioned to leverage technology and help people lead better lives. As the pioneers in Indian e-commerce, Flipkart is doing that every day,” said Masayoshi Son, chairman and CEO of SoftBank Group Corp.
The investment will likely make SoftBank the largest investor in Flipkart.