Indian e-commerce giant Flipkart on Thursday announced investments from Japnese giant SoftBank Vision Fund. While the numbers have not been revealed, the deal is touted to be the largest ever private investment in an Indian technology company.
SoftBank Vision Fund, the world's largest technology-focused investment fund has now become Flipkart's largest shareholder with the investment which is a mix of primary and secondary capital. "The investment is 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 $4 billion of cash on its balance sheet," said a statement from Flipkart.
Flipkart's co-founders called it a monumental deal for the e-commerce company in 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," said a statement from Binny Bansal and Sachin Bansal, Co-Founders of Flipkart.
Speaking about the deal, Founder Chairman and CEO of SoftBank, Masayoshi Son said that 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," he said.
SoftBank has a proven track record of partnering with transformative technology leaders has earned it the reputation of being a visionary investor. Flipkart said that it was excited to welcome the Vision Fund as a long-term partner. "We will 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," said Flipkart.