E-commerce marketplace Flipkart has raised an investment from Vision Fund of Japanese conglomerate SoftBank. Per a company statement, the round is a mix of primary and secondary capital, from SoftBank Vision Fund. Company claims that, it will now have an excess of USD 4 Bn of cash on its balance sheet – as claimed by the company. The investment is a part of the earlier USD 1.4 Bn round from Tencent, eBay, and Microsoft. The investment in April 2017 was done at a post-transaction valuation of $11.6 Bn.
Report of Softbank planning to invest USD 2 Bn in company had been doing rounds earlier. Even the previous balance in Flipkart’s books of accounts prior to the $1.4 Bn funding indicates that it actually has received an investment of USD 2 Bn. Flipkart claims that this is the biggest ever private investment in an Indian technology company. The investment makes the Vision Fund one of the largest shareholders in Flipkart.
Talking about the funding, Masayoshi Son, Founder and Chairman & CEO of SoftBank Group Corp said,
“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.”
Binny Bansal and Sachin Bansal, co-founders of Flipkart said,
“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. 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.”
SoftBank’s Vision Fund was launched in October 2016. The fund is currently headed by Softbank Group founder and CEO Masayoshi Son and India born Rajeev Misra, designated as CEO of SVF.