Flipkart Receives India's Largest Tech Funding Round of $2.5 Billion from SoftBank
Japan's Softbank has invested $2.5 billion in Flipkart. The investment fund has taken a major decision after a failed attempt to merge Snapdeal with Flipkart. The investment is reportedly a mix of primary and secondary capital.
This is the largest tech funding round happened in the country. With this massive $2.5 billion, SoftBank has become the largest stakeholder in the Indian e-com giant. Earlier Tiger Global held the majority stake in Flipkart. Tiger Global Management has partially exited from Flipkart as part of the deal. SoftBank's decision has set a new record for the Indian startup ecosystem. SoftBank is trying to recover the lost grounds with this new investment round.
Flipkart has just announced that the company has $4 billion cash on its balance sheet after the latest round. The leading e-com startup has just acquired a decade old business of eBay.in. The San Jose based online marketplace has sold its India business to Flipkart after struggling to build grounds for a decade. eBay is the third large e-com company acquired by Flipkart after Jabong and Myntra. With the latest round of funding, Flipakrt is now valued at $11 billion.
In an official statement, Flipkart cofounders Sachin and Binny Bansal said, "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."
Masayoshi Son, CEO of SoftBank is happy that the company was able to engage with Flipkart independently after the deal between its portfolio company, Snapdeal and Flipkart was called off by Kunal Bahl and Rohit Bansal, cofounders of Snapdeal. The Japanese firm is betting on India even after suffering the losses of $1.4 billion last year.
SoftBank is making major investments in India through its technology-focused Vision Fund worth $100 billion. The only big competition in front of Flipkart is Amazon. The Seattle-based retail giant has already pumped $5 billion in it's India business. Jeff Bezos has already promised more funding to flourish amazon.in's operations.