SoftBank Vision Fund on Thursday said it had invested $2.5 billion (around Rs 16,500 crore) in Flipkart, giving India’s largest e-commerce firm the funds to take on Amazon. This is the largest investment the SoftBank Group’s IT venture has made in a private internet firm in India, according to the Business Standard.
“India is a land of vast opportunity,” said Chairman and Chief Executive Officer of the SoftBank Group Masayoshi Son. “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.”
News of SoftBank Vision Fund’s investment in the Bengaluru-based company comes on the heels of failed talks to merge SoftBank-backed Snapdeal with the Indian e-commerce giant.
This $2.5 billion investment in Flipkart is part of the same round of funding that was announced in April, when the company had raised $1.4 billion (around Rs 9,000 crore) from Microsoft, eBay and Tencent. Flipkart has used around $1 billion (around Rs 6,000 crore) of SoftBank’s investment to buy off shares of hedge fund Tiger Global, which has been looking to leave the firm partially. The remaining will be invested in the company.
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