Flipkart, India’s leading e-commerce marketplace on Thursday announced an investment — 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 company said in a statement.
The investment is part of the previously announced financing round, where Flipkart had raised capital from — Tencent, eBay and Microsoft.
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After this financing round, Flipkart will have in excess of $4 billion of cash on balance sheet.
India has a thriving Internet market with close to 500 million Internet users and as per market research, the Indian e-commerce market is expected to grow at a five-year CAGR in excess of 30%.
“This is a monumental deal for Flipkart and India. 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’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.
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The funding round further solidifies Flipkart’s balance sheet and will help accelerate investment in driving continued market leadership.
“India is a land of vast opportunity. 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.