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SoftBank's Vision Fund Acquires Stake In Flipkart

The SoftBank Vision Fund has invested in Flipkart via a mix of direct capital infusion and buying out stakes from some of the firm's existing investors

Flipkart Group, India's largest e-commerce marketplace, has announced an investment of $2.5 billion— a mix of primary and secondary capital — from SoftBank Vision Fund, the world’s largest technology-focused investment fund. This is the biggest ever private investment in an Indian technology company, and will make the Vision Fund one of the largest shareholders in Flipkart. 

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. 

“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,” said Binny Bansal and Sachin Bansal, Co-Founders of Flipkart.

The deal comes 10 days after SofBank's attempts to forge a deal between Flipkart and its smaller rival Snapdeal fell apart following months of negotiations.

Launched in October 2007, Flipkart offers over 80 million products across 80+ categories and group companies Flipkart, Myntra, Jabong, PhonePe and 

“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,” said Masayoshi Son, Founder and Chairman & CEO of SoftBank Group Corp., who previously publicly announced his long-term commitment to investing in India.

SoftBank Vision Fund will enable long-term, large-scale investments to fund growth in the technology sector, investing up to $100 billion over the next five years. The Fund will invest through minority stake, majority stake and public equity investments of $100 million or more. It will aim for a minimum investment horizon of ten years, providing businesses with a committed partner for long term growth.

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