Investments

Flipkart Lands $2.5 Billion In Funding From SoftBank

SoftBank, the technology investment firm, has invested $2.5 billion in a funding round for Flipkart, the India eCommerce shopping company, marking the largest private investment in the country’s consumer tech market.

According to a news report in The Economic Times, with the $2.5 billion investment, SoftBank becomes the largest investor in the eCommerce shopping company that is currently in a battle with Amazon.

“This is a monumental deal for Flipkart and India,” said Co-Founders Sachin Bansal and Binny Bansal in an interview with the Economic Times. The executives said the funding round is a recognition of India’s “unparalleled potential to become a leader in technology and eCommerce on a massive scale.”

The investment is coming from SoftBank’s Vision Fund and will provide a partial exit for investment firm Tiger Global, which was the largest investor in Flipkart, reported the Economic Times, citing three people aware of the deal. Tiger Global reportedly owns a 18 percent stake now, while Naspers and Tencent of China together own a 20 percent stake, according to the report. The deal values Flipkart at between $7 billion and $8 billion.

“We are excited to welcome the [SoftBank] 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,” the founders said in an additional statement to the Economic Times.

Sachin Bansal is the executive chairman of the company, while Binny Bansal is the group chief executive officer. “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 eCommerce, Flipkart is doing that every day,” SoftBank Founder Masayoshi Son said in a statement to the Economic Times.

With the Flipkart investment, Softbank has invested more than $6 billion in companies in India, with investments in Paytm and Ola, the ride-hailing company.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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