Vision Fund, the $93m investment fund formed by telecommunications firm SoftBank, has invested an amount reported by LiveMint to be “at least” $2.5bn in India-based e-commerce company Flipkart.
Flipkart confirmed the investment in a statement without giving the figure, which was revealed to LiveMint by three sources, who added that the transaction involves the purchase of primary and secondary shares.
An earlier report suggested hedge fund manager Tiger Global Management was set to sell shares to SoftBank as part of a prospective deal.
Founded in 2007, Flipkart has built the largest e-commerce marketplace in India by market share. It currently lists about 80 million products across more than 80 consumer categories including electronics, fashion, appliances and furniture.
The funding will make up part of a round that pulled in $1.4bn from internet group Tencent, e-commerce firm eBay, software provider Microsoft and e-commerce group Naspers in April this year. Flipkart now has $4bn on its balance sheet, it said in a statement.
SoftBank has long been active in India’s startup space and has heavily backed Flipkart’s chief domestic rival, Snapdeal. After Flipkart began pulling away in the past year, SoftBank tried to broker its acquisition of Snapdeal, only for the deal to fall through at the end of last month.
Flipkart had raised about $3.3bn in funding before the April investment, which valued it at $11.6bn post-money. Its corporate backers also include Bennett, Coleman & Co, the media company also known as Times Group, which invested $39m in February this year.
Naspers, Tiger Global, Steadview Capital, Qatar Investment Authority, GIC, Morgan Stanley Investment Management, DST Global, Sofina, Accel, Iconiq Capital, IDG Ventures India, Baillie Gifford, Greenoaks Capital and T. Rowe Price had invested in the company prior to the current round.
Flipkart co-founders Binny Bansal and Sachin Bansal said: “Very few economies globally attract such overwhelming interest from top-tier investors. It is recognition of India’s unparalleled potential to become a leader in technology and e-commerce on a massive scale.
“SoftBank’s proven track record of partnering with transformative technology leaders has earned it the reputation of being a visionary investor. We are 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.”