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Flipkart Announces Funding from SoftBank, Calls It 'Biggest Private Investment in an Indian Tech Company'

Flipkart Announces Funding from SoftBank, Calls It 'Biggest Private Investment in an Indian Tech Company'

By Gadgets 360 Staff | Updated: 10 August 2017 14:25 IST

Highlights

Flipkart announces investment from the SoftBank Vision Fund
It says this is the biggest private investment in an Indian tech company
It says it has over $4 billion cash reserves after this funding

In a statement on Thursday, Flipkart announced an investment from the SoftBank Vision Fund, as a part of Flipkart's previously announced round of financing. 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.

With this, Flipkart will now have over $4 billion (approximately Rs. 25,585 crores) in cash on its balance sheet, the company stated. This includes the rest of the funds raised in the latest round, which includes investment from Microsoft, eBay, and Tencent.

In a prepared statement, co-founders Binny Bansal and Sachin Bansal 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."

In recent times, Flipkart also completed the acquisition of eBay India, and was reportedly in talks to acquire Snapdeal. SoftBank is one of the lead investors in Snapdeal, though the day after Snapdeal announced that it terminated talks with Flipkart, it emerged that SoftBank was looking to invest in Flipkart.

"India is a land of vast opportunity," said Masayoshi Son, Founder, Chairman, and CEO of SoftBank Group. "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."

"The Vision Fund is proud to be part of this landmark transaction which is a strong endorsement of India and its thriving economy," added Rajeev Misra, CEO of the SoftBank Vision Fund. "We look forward to being a part of Flipkart’s journey towards becoming one of the most successful e-commerce companies in the world."

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