SoftBank missed out on getting a piece of Flipkart when its deal to acquire Snapdeal, the e-commerce firm which SoftBank backed in 2015, fell apart last month, but the Japanese tech giant has finally got there.
The Vision Fund is buying a mix of primary and secondary sales, but the size of the investment is not disclosed. All that both sides said is that the deal is the largest private investment in an India-based tech company, and that it makes the Vision Fund “one of the largest shareholders in Flipkart.”
Citing sources, India’s Economic Times reported that the deal is around the $2.5 billion mark. SoftBank and Flipkart both declined to comment.
Flipkart did say that the fresh injection leaves it with over $4 billion on its balance sheet. That’s a pretty handy arsenal for battling Amazon’s India unit. While this extension adds SoftBank, a major global influencer, to the already-stellar names of Microsoft, Tencent and eBay which participated in April funding round.
That deal was a record Indian investment at the time, so SoftBank is spending at least $1.5 billion this time around. It could well be more — much more. Bloomberg reported at the end of July that the two sides were in talks over a potential $2 billion investment and now Economic Times is saying it is higher still.
Beyond press speculation, a deal seemed on the cards when SoftBank CEO Mashayoshi Son admitted his interest in Flipkart at an investor meeting this week. Son also went public with his intention to invest in Uber — another much-rumored deal — although he also admitted that SoftBank is studying a potential deal with Uber’s U.S. rival Lyft.
More to followFeatured Image: Tomohiro Ohsumi/Getty Images Read more at techcrunch.com