SoftBank Vision Fund Invests Big in Flipkart

SoftBank Vision Fund Invests Big in Flipkart

SoftBank Vision Fund Invests Big in Flipkart

The investment by SoftBank into Flipkart is part of the same funding round which saw the Bengaluru company raise $1.4 billion from Tencent, eBay and Microsoft four months ago.

"The funding round further solidifies Flipkart's balance sheet and will help accelerate investment in driving continued market leadership", it said.

This investment comes weeks after a possible deal between Flipkart and Snapdeal fell through.

Flush with funds, Flipkart can now up the ante in the high-stakes battle against Amazon India in what is probably the world's fastest growing e-commerce market.

This will lead to more innovations coming into the market in terms of making better customer experience and also the companies would now work towards getting a better hold in the smaller towns and cities, Gururaj said adding that the consumers can now expect better deals and discounts. But deal talks broke down last week, so SoftBank has now moved on and is investing in Flipkart directly. Those investments have come both through the company itself, as well as the SoftBank Vision Fund, an investment fund that also includes partners such as another fund operated by Saudi Arabia's government.

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"We're excited to welcome the Vision Fund as a long-term partner as we continue to build our business", Flipkart co-founders Binny Bansal and Sachin Bansal, said in a statement.

SoftBank seems intent on spreading at least some of the $93 billion in capital raised by the Vision Fund to emerging tech firms operating in markets in Asia-Pacific. "We want to support innovative companies that are clear winners in India".

Another leading investor Ravi Gururaj was of the view that the recent funding has just made things hard for the other global players such as Rakuten, Walmart and Alibaba to make a roadway in the Indian e-commerce market. "It is recognition of India's unparalleled potential to become a leader in technology and e-commerce on a massive scale".

After the latest round, Flipkart has raised more than $6 billion in cash since starting out in 2007. On Thursday, SoftBank announced that it has invested close to $2.5 billion in the company.

Softbank's funding will help Flipkart to hire more people in the field of research to develop future technologies to improve customer experience, and compete on a more level playing field with Amazon. With its bags full with new capital infusion Flipkart will look to bolster its position in the Indian ecommerce space, as well as steady its war chest against ecommerce giant Amazon.

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