Brand News #9
The biggest ever investment in the Indian internet space has gone to Flipkart. The infamous SoftBank group based in China has invested $2.5 bn in Flipkart through their Vision Fund.
The fund is a mixture of primary investment in the company as well as secondary investments aimed at the purchase of shares especially from the Tiger Global Management, the largest shareholder of Flipkart.
The fact that Flipkart's proposed takeover of Snapdeal (a SoftBank portfolio company) didn't succeed has not deterred SoftBank from making the huge investment. SoftBank recognizes Flipkart as a technology leader capable of bettering the lives of its customers through everyday innovations driven by technology.
This event is also an indicator as to how attractive the Indian economy is from a tech perspective. Getting funds of such tune from top investors is no easy task even for established players.
From SoftBank's angle, this investment makes their Vision Fund the largest shareholder in the online retailer sector and naturally the largest investor in Flipkart as well.
Now, it will be interesting to see how Flipkart will utilize these funds to take the fight to Amazon.
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