SoftBank Group’s technology-focused investment fund SoftBank Vision Fund has officially invested in India’s largest ecommerce marketplace Flipkart. This will be a mix of primary and secondary capital.
According to a statement put out by Flipkart, this is the biggest ever private investment in an Indian technology company, and will make the Vision Fund one of the largest shareholders in Flipkart.
The investment is part of the previously announced financing round, where Flipkart had raised capital from Tencent, eBay and Microsoft.
Post this financing round, Flipkart will have in excess of $4 billion of cash on its balance sheet.
“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,” Binny Bansal and Sachin Bansal, Co-Founders of Flipkart said in the statement.
“India is a land of vast opportunity. 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, Founder and chairman and CEO of SoftBank Group.
SoftBank Vision Fund, which raised over $93 billion in May, aims to invest globally in the businesses and technologies that will enable the next stage of the Information Revolution.
Investing up to $100 billion over the next five years, the Fund will enable long-term, large-scale investments to fund growth in the technology sector.
The Fund will invest through minority stake, majority stake and public equity investments of $100 million or more. It will aim for a minimum investment horizon of ten years, providing businesses with a committed partner for long term growth.
SoftBank, until a few weeks ago, was orchestrating the sale of Snapdeal to Flipkart after it suffered a loss of over $1 bn on its investment in Snapdeal. However, despite its efforts, the sale did not go through after Snapdeal’s founders decided to run the company independently.