India's Flipkart receives big investment from SoftBank fund

The fundraising pegs the value of Flipkart perhaps at an estimated $11.6 billion, the same as it was in April during the previous round, a source said. Ten days ago, the merger negotiations between Flipkart and Snapdeal failed; as the majority stakeholder in Snapdeal, SoftBank is believed to have written off its estimated $900-million investment in the firm.

For almost two years, the battle for dominance in e-commerce was a three-way race between Flipkart, Amazon and Snapdeal. Amazon CEO Jeff Bezos has decided India is the company's top prospective market overseas and pledged more than $5 billion to expansion efforts there. The deal was reportedly backed by SoftBank, which is the largest investor in Snapdeal. Softbank has a record of partnering with cutting-edge technology companies and Flipkart is hopeful of a long term fruitful partnership with the investor.


After the current financing round wherein Softbank's Vision Fund joins Tencent, eBay and Microsoft, Flipkart will have an excess cash of over $4 billion on its balance sheet, according to a company statement.

SoftBank seems intent on spreading at least some of the $93 billion in capital raised by the Vision Fund to emerging tech firms operating in markets in Asia-Pacific.


Masayoshi Son, founder and chairman and chief executive of SoftBank Group Corp said, "India is a land of vast opportunity". "We look forward to the results of the Snapdeal 2.0 strategy and to remain invested in the vibrant Indian e-commerce space", he said in a statement last month. They are continuing their marketing leadership. We want to support innovative companies because they are best positioned to leverage technology.

Soft Bank has been spanning over United States dollars of 6 billion in India e-commerce like digital payments, digital payments, ride sharing and hospitality. "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". Flipkart now has a lot more cash to splash. 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.


Softbank's funding will help Flipkart to hire more people in the field of research to develop future technologies to improve customer experience, and compete on a more level playing field with Amazon.


Popular
  • Sergio Ramos: I hope Neymar leaves Barcelona

    Sergio Ramos: I hope Neymar leaves Barcelona

    The Real Madrid centre half also addressed the ongoing rumours that Neymar could be about to leave Barcelona to join PSG . Messi reportedly said farewell to his South American counterpart and wished him well for his new adventure in Ligue 1.
    Johnson votes

    Johnson votes "yes" to allow healthcare debate

    The 80-year-old McCain had been home in Arizona trying to decide on treatment options for brain cancer. In a statement , McCain called the Senate's inability to craft wide-ranging legislation "inexcusable".
    Gunmen attack Kenyan Deputy President's residence

    Gunmen attack Kenyan Deputy President's residence

    The number of attackers, who are said to be armed, was reported as two but their mission remains unclear. The armed attackers are said to have forced their way into the home shortly before 1pm on Saturday.
  • Samsung's Galaxy S8 Active is apparently its toughest phone to date

    Samsung on Monday officially announced the Galaxy S8 Active , a more rugged version of its flagship Galaxy S8 smartphone . Samsung Knox, is also included - a feature which Sammy refers to as a "defense-grade mobile security platform".
    Speaker Baleka Mbete allows secret ballot

    Speaker Baleka Mbete allows secret ballot

    This motion is therefore in the interest of the Democratic Alliance and opposition forces and not in the interest of our country. Almost all of the 149 opposition MPs have stated they will vote for Mr Zuma to be removed.
    Usain Bolt prepares for his final hurrah at World Athletics Championships

    Usain Bolt prepares for his final hurrah at World Athletics Championships

    This was thought to be in response to De Grasse suggesting Bolt might be slowing down in his final season. De Grasse's injury will also be a blow to the Canadian team's hopes at the world championships .
  • Jordan's King Abdullah due in Ramallah to bolster Palestinian leader Abbas

    The visit is reportedly expected to bolster Abbas' political position as he has recently severed political ties with Israel. When Netanyahu warmly greeted the guard upon his return to Israel, Abdullah said there would be diplomatic consequences.
    Three Marines missing after aircraft 'mishap' off Australian coast

    Three Marines missing after aircraft 'mishap' off Australian coast

    The aircraft was in Australia for a joint military training exercise held by the USA and Australia last month in Shoalwater Bay. A MV-22 Osprey carrying 26 military personnel went down about 4 p.m. local time Saturday, according to Marine officials.
    Injured in Dolores Park Shooting

    Injured in Dolores Park Shooting

    Police are now searching for several suspects and will stay at the park this evening to investigate, KPIX reported. Another hospitalised victim is a minor and no details of his condition were being released, Andrew said.
  • Pakistan's deposed PM to resume rally amid tight security

    A plan to address supporters in Islamabad was canceled due to security reasons and paucity of time, party leaders said. On July 29, Pakistani Supreme Court chose to remove Sharif following corruption investigation into his family.
    New details about Usher's recent lawsuit emerge

    New details about Usher's recent lawsuit emerge

    She also added that others have come forward, claiming that they too engaged in sexual activity with the singer. She says 1 of the remaining clients - either the man or woman - has tested positive for herpes .
    Pakistan to elect new PM on Tuesday

    Pakistan to elect new PM on Tuesday

    The paper also revealed that Nawaz Sharif's family had bought posh apartments in London through offshore companies. The five judges reached a unanimous verdict in the Islamabad court, which was filled to capacity.

CONNECT