10 August 2017, India:
After the merger with Snapdeal torn apart, Flipkart has been in talks with SoftBank to raise funds and today SoftBank Vision Fund invested a record $2.5 Billion in Flipkart. After this financing round, Flipkart will have in excess of $4 billion of cash on balance sheet.
Flipkart didn’t disclose the amount but said that SoftBank Vision Fund investment comprises a mix of primary and secondary capital.
“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,” said Binny Bansal and Sachin Bansal, Co-Founders of Flipkart.
“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,” said Masayoshi Son, Founder and Chairman & CEO of SoftBank Group Corp., who previously publicly announced his long-term commitment to investing in India.
“The Vision Fund is proud to be part of this landmark transaction which is a strong endorsement of India and its thriving economy. We look forward to being a part of Flipkart’s journey towards becoming one of the most successful e-commerce companies in the world,” said Rajeev Misra, CEO of the Vision Fund.
Vision Fund joins Tencent, eBay and Microsoft in the current financing round, significantly increasing the investment capital available to Flipkart. This investment round allows Flipkart to further its mission to transform India and SoftBank to invest in a market leader with scale.
(Cover- DealStreetAsia)
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