Japanese internet and telecom giant SoftBank has now agreed to back a new lobby group for Indian internet startups, Indiatech. Indiatech will now see SoftBank providing it financial and strategic ammunition as local internet companies are planning fight foreign rivals. SoftBank has significant stakes in Flipkart, Ola, Oyo Rooms, Paytm, Grofers and Snapdeal among others, all of which are engaged in a bitter battle with Amazon and Uber.
To Support the Development of Internet Ecosystem
“SoftBank is one of the several other investors including Matrix and Kalaari in Indian internet businesses such as Ola, Flipkart and Hike, which is supporting Indiatech. Our intent is to work with the government to support the development of the rapidly evolving internet ecosystem in the country and we hope the organization would facilitate this,” said a SoftBank spokesperson in her statement.
Views of Domestic Companies
Domestic companies said that by capital dumping, global majors like Amazon are creating an unfair environment for competition in India. Flipkart has been voicing its stand in several public forums while Ola has taken on Uber.
Deciding to Back the Association
“SoftBank has got the highest stakes in all these major companies, so it has decided to back the association as their portfolio companies have major foreign rivals, especially Amazon. Much like the big startups relying on SoftBank in India, the association will see significant assistance from SoftBank, “a person directly aware of the development said.