SoftBank mulls biggest fund infusion in India: To invest $3 bn in 2017, buy stake in Flipkart

Japanese investment company SoftBank Group, which is in the midst of a portfolio restructuring in India, has plans to make its biggest investment in the country in 2017.

The Japanese multinational telecommunications and Internet corporation is considering investment to the tune of $3 billion in India for the current year, and plans to buy 10 percent stake in the country's largest online marketplace firm Flipkart, CNBC-TV18 said.

In December, when Masayoshi Son, founder and CEO, came to India, he had said, “India has the best opportunity ahead of us. That is why I come here today.” The company has so far invested $2 billion in India and will look to invest another $8 billion over the next eight years."

“Fifteen years ago we made lots of investment in China. Five years before that I made investments in Japan. Ten years before that in the US. All of them were in internet-related companies,” The Hindustan Timesreport said quoting Son then.

Reuters

Reuters

Even as the company is looking to cut some flab in India after its investment in Snapdeal failed to yield any meaningful returns, SoftBank continues to remain bullish about its investment plans in India.

Currently the largest investor in New Delhi-based Snapdeal, Softbank is in talks with e-commerce major Flipkart to sell the company. The Japanese is persuading other key investors to come on board for the proposed sale of Snapdeal to Flipkart.

In return of Snapdeal sale to Flipkart, the Japanese investor will look to infuse capital in Flipkart and buy a stake in the country's largest e-commerce company.

"With the Flipkart-Snapdeal merger, SoftBank will have a significant stake in the country’s largest e-commerce firm, which will be much bigger than Amazon India," a HT report said.

In the current month itself, SoftBank said it has invested around Rs 1,675 crore in fresh funding in Indian transportation startup Ola to give it more muscle to take American rival Uber head-on.

The company is also in talks with fintech start-up Paytm to invest around $1.2-1.5 billion in cash.

The Japanese group's penchant for startups remains intact as it looks to be part of Oyo Rooms' $250 million fundraising plans. The fundraising will see SoftBank get around 42 percent stake in Oyo from the current 27 percent, The Economic Timesreport said.


Published Date: Apr 26, 2017 01:56 pm | Updated Date: Apr 26, 2017 03:41 pm


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