Japan-based SoftBank has reportedly invested over USD 2.5 billion in Flipkart to become one of its largest shareholders. SoftBank's new investment came through its USD100 billion technology-focused Vision Fund.
While Flipkart has not disclosed the exact amount, the Economic Times has reported that the total investment by Softbank Vision Fund was pegged at USD 2.5-2.6 billion.
Flipkart today issued a press statement saying, "This is the biggest ever private investment in an Indian technology company." It further said that the investment was part of the previously announced financing round where Flipkart had raised capital from three of the world's premier technology companies - Tencent, eBay and Microsoft. "After this financing round, Flipkart will have in excess of USD 4 billion of cash on balance sheet," Flipkart added.
Speaking on the new investment, Flipkart co-founders Binny Bansal and Sachin Bansal said: "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."
SoftBank CEO Masayoshi Son in a statement said that he wanted to support Flipkart because it is best positioned to leverage technology. He said: "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."