Science

SoftBank invests about $2.5 billion in Flipkart

SoftBank invests about $2.5 billion in Flipkart”

Flipkart said the investment is part of the previously announced financing round in which the company had raised $1.4 billion (Rs 9,000 crore) from Chinese Internet giant Tencent Holdings Ltd, US online retailer eBay and software giant Microsoft Corp.

Tiger Global, the hedge fund that had invested in Flipkart early on, is expected to have received a partial exit following this investment. Mint couldn't immediately ascertain the exact amount of the deal.

As a result, SoftBank will now become the largest shareholder in Flipkart, just days after Snapdeal founders chose to terminate merger talks with the Bangalore-based company.

Flipkart is the biggest ecommerce firm in India, with around 37% market share, according to industry estimates. Very few economies globally attract such overwhelming interest from top-tier investors.

In a tweet, Binny Bansal, co-founder and CEO, Flipkart welcomed SoftBank Vision Fund. In its statement, Flipkart pointed out that this is the biggest ever private investment in an Indian technology company, and will make the SoftBank Vision Fund one of the largest shareholders in Flipkart.

"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".

ET had reported that SoftBank would look to invest between $1.5 to $2 billion into Flipkart after talks between Snapdeal and Flipkart fell through. The investment in April 2017 was done at a post-transaction valuation of $11.6 Bn.

SoftBank Vision Fund is the global technology-focused investment fund.

The fresh funds for Flipkart come at a time when the company is scripting a revival in the face of rapid advances by Amazon, which has committed an investment of $5 billion in India. Softbank has a record of partnering with cutting-edge technology companies and Flipkart is hopeful of a long term fruitful partnership with the investor. This investment round allows Flipkart to further its mission to transform India and SoftBank to invest in a market leader with scale. The talks collapsed at the end of July, but multiple reports suggested SoftBank would participate in Flipkart's next funding round. The fund is now headed by Softbank Group founder and CEO Masayoshi Son and India born Rajeev Misra, designated as CEO of SVF. Citi served as financial advisor and AZB and Partners served as legal advisor to the SoftBank Vision Fund.



Like this

Latest


10 August 2017
Ravindra Jadeja attributes top all-rounder Test ranking to MS Dhoni, Virat Kohli
The significant gainer is Ajinkya Rahane (776 points), who has climbed five places to sixth in the list. Pacers Mohammad Shami (20th) and Umesh Yadav (22nd) have also made notable gains.

10 August 2017
(NYSE:LYV) Position Lowered by Sei Investments Co
Sentry Investments Corp. raised its position in shares of Live Nation Entertainment by 10.0% in the first quarter. (NYSE:LYV). Institutional investors maintain the ownership of 66.60% shares and 0.80% shares have in possession of insiders investors.

10 August 2017
AIADMK sacks Sasikala's nephew, Dhinakaran as deputy general secretary
The meeting passed a resolution to sack TTV Dhinakaran from the post of deputy general secretary and party membership. The sources said that OPS may leave for Delhi on Saturday.

10 August 2017
Deadpool director to helm cyberpunk Neuromancer adaptation
Neuromancer doesn't have a release date set yet, but we'll keep you updated with more info as soon as we hear it. Neuromancer has been adapted into a video game, a graphic novel, a radio play, and audiobook and even an opera.

10 August 2017
Fear of North Korea attack sends Wall Street spiraling
Reports early on Tuesday indicated that North Korea was able to build nuclear bombs small enough to fit on a missile. Still, he said, "the Washington, D.C., bedlam and North Korea's saber-rattling is muddying the broader landscape".

10 August 2017
Stevie Nicks announces Australian solo tour
Meanwhile, Melbourne artist Ali Barter has been confirmed as the supporting act for the A Day On The Green gigs. The 24 Karat Gold tour is named after Nicks' 2014 album, 24 Karat Gold: Songs From the Vault .

10 August 2017
Latest 'Arms' Update Overhauls Fighters, Adds New Training Options
For "Best Stage" in Stats, made it harder for less frequently played stages to be selected, even if you have a high win ration [sic] on them.

10 August 2017
Bigg Boss Tamil: Now, Harathi making a remark about Oviya
The lady, who is quite active on the social media-recently sent out a tweet and made a shocking claim about Oviya and Bharani. In six weeks of her stint at Bigg Boss , Oviya gained an army of fans and she is now the darling of Tamilians'.

10 August 2017
Double decker London bus smashes into shop in Lavender Hill
One crew from the station, in Old Town, was dispatched to the scene, on Lavender Hill Way, in Clapham, at around 7am this morning. The incident took place on Thursday morning, as one of London's symbolic red buses drove into a shop in Lavender Hill.

10 August 2017
Shannen Doherty: Return to work helped me fight 'unimaginable beast' of cancer
Fans are so glad she's finally feeling up to getting back to work! It's still a great vehicle . Shannen Doherty will get better. "Performing like it's supposed to", she said.



Recommended