Published By : 02 Aug 2017 | Published By : QYRESEARCH
SoftBank Vision Fund that invests in technology companies, is planning to put its money in Flipkart, the giant Indian online retailer, after the merger deal of Flipkart and Snapdeal fell flat. The fund has planned to invest something in between US$1.5 bn and US$2 bn into the e-commerce giant by October 2017. Nearly half of this amount will be paid to Tiger Global Management, which intends to sell some part of its stake in Flipkart.
Masayoshi Son, the chairman of SoftBank Group, founded the Vision Fund, however, it is operated as a separate entity. It proposed to invest in Flipkart on Monday, just after Snapdeal, in which SoftBank is an investor, rejected the merger proposal of Flipkart in order to keep operating as a standalone company in future. SoftBank, one of the leading banks in the world, has already written off a major chunk of its investment in Snapdeal.
After a collective investment of US$1.4 bn by Tencent, EBay, and Microsoft in April, 2017, Flipkart stood at an opportunity of US$11.6 bn. This additional investment from Vision Fund is expected to help the Indian e-retailer stand against Amazon.com, which is currently planning to invest around US$5 bn in its operations in India. SoftBank has always been enthusiastic over supporting e-commerce in the emerging regions. In 2000, it made it first investment of US$20 mn in Alibaba, the Chinese retail giant. As of now, SoftBank’s stake in Alibaba is more than US$100 bn.