SoftBank Group Corp. is in talks with Walmart-owned Flipkart to invest $700 million in the internet retailer. The speculated investment by SoftBank in Flipkart comes from Vision Fund 2 and forms a part of a $1.2 Billion to $ 1.5 Billion funding round. After this transaction, Flipkart would be valued at $28 Billion to $30 Billion depending on the final investors on board. The deal is expected to sail through in the upcoming 3-4 months.
SoftBank had earlier invested $2.5 billion in Flipkart, before its exit in 2018. In the present scenario, Reliance Industries and Tata are also making acquisitions and betting big on e-commerce. If the SoftBank- Flipkart deal is successful, the funding may help the e-commerce firm to compete with big players in the market like Amazon, Tata Group, and JioMart.
SoftBank Vision Fund 2 is betting big on Indian enterprises this year. It is also in talks to invest up to $500 million in Swiggy, the food delivery giant. Also, OfBusiness, a platform operating on a business-to-business marketplace, is in advanced talks to raise $150 million from SoftBank.