Flipkart has raised investment from SoftBank’s $100 billion technology-focused Vision Fund, the Indian e-commerce company announced on Thursday. The investment was a mix of primary and secondary capital.
While the company did not disclose an amount, the total investment by SoftBank Vision Fund is pegged at $2.5-2.6 billion making it the largest shareholder in the company, according to one source briefed on the matter. The deal will give Flipkart’s largest backer, New York-based investment firm Tiger Global Management, a partial exit.
The investment is part of Flipkart’s recent round where it raised $1.4 billion from Tencent, eBay and Microsoft. Flipkart said that it will now have over $4 billion of cash on its balance sheet following this investment.
ET had reported that SoftBank would look to invest between $1.5 to $2 billion into Flipkart after talks between Snapdeal and Flipkart fell through. Last week, Snapdeal had said it had terminated all acquisition discussions to pursue an independent path.
“This is a monumental deal for Flipkart and India. 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,” Flipkart c-founders Binny Bansal and Sachin Bansal said in a statement.
SoftBank CEO Masayoshi Son had said that the Tokyo-headquartered conglomerate would engage with Flipkart independently after the talks between its portfolio company Snapdeal for a possible acquisition were called off by founders Kunal Bahl and Rohit Bansal.
“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,” Son said in a statement.
SoftBank also recently pumped in $1.4 billion in digital payments and commerce firm Paytm at a valuation of over $7 billion. The investment had received approval from India’s Competition Commission of India last month.