Flipkart secures $2.5bn funding from SoftBank Group
Indian e-commerce retailer Flipkart has secured a $2.5bn investment from Japan’s SoftBank Group.
The latest investment will enable SoftBank’s Vision Fund division to become one of the largest shareholders in Flipkart.
The financing comprises around $1.5bn in direct funding, while the remaining sum of $1bn derives from the purchase of Tiger Global Management's stake in the Indian online retailer.
Flipkart co-founders Binny Bansal and Sachin Bansal told media sources: "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.”
In April, Flipkart raised around $1.4bn from eBay, Microsoft and China’s Tencent, as well as acquired eBay’s Indian operations.
The e-commerce company previously made several attempts to acquire its loss-making rival Snapdeal, however, the latter refused to accept the proposal and decided to continue operations on its own.
These developments are part of Flipkart’s plan to consolidate its market position in India's retail industry.