Softbank fund invests in Flipkart, becomes one of its largest shareholders

India’s largest Internet firm Flipkart Ltd on Thursday announced its biggest ever private equity investment led by Japan’s SoftBank Vision Fund.According to official sources, the funding is a mix of primary and secondary capital led by SoftBank Vision Fund, the world’s largest technology-focused investment fund.The investment is part of the previously announced financing round, where Flipkart had raised capital from three of the world’s premier technology companies — Tencent, eBay and Microsoft. After this financing round, Flipkart will have in excess of $4 billion of cash on its balance sheet.The company made it clear that the current investment is part of the previously announced financing round, where Flipkart had raised capital from three of the world’s premier technology companies — Tencent, eBay and Microsoft.After this financing round, Flipkart will have in excess of $4 billion of cash on its balance sheet. Commenting on the development, Flipkart co founders Binny Bansal and Sachin Bansal said that it 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,” stated the co-founders.’SoftBank’s proven track record of partnering with transformative technology leaders has earned it the reputation of being a visionary investor. We’re excited to welcome the Vision Fund as a long-term partner as we continue to build our business with a focus on serving the needs of all Indians, and driving the next phase of technology adoption in India,” said the co-founders in a joint statement. The investment comes at a time when Flipkarts efforts to buy Snapdeal didnt materialise.
Source: DH