Softbank has invested a sum of $100 billion in the Indian commerce company FlipKart. While the company has not disclosed the actual amount, the total amount is estimated to be $2.5-2.6 billion, making it the largest shareholder in the company.
FlipKart’s new balance sheet
This deal has given Tiger Global Management, a New York based investment firm a partial exit. By this investment Flip Kart has raised $ 1.4 billion from Tencent, EBay and Microsoft, thus FlipKart will now have $4 billion of Cash on its balance sheet.
“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” Says Flipkart’s founder Binny Bansal and Sachin Bansal. The company is now also organizing an event for its staff members which it has organized earlier for its customers.
Flipkart budding programme for employees instigated.
Masayoshi Son’s View
Son said that Softbank would engage with FlipKart only after talks between Snapdeal for a possible acquisition were called off by Kunal Bahl and Rohit Bansal, founders of Snapdeal. He further adds that “We want to support innovative companies in India as they take help of technology up to a maximum extent and help people lead better lives”.