Indian e-commerce platform Flipkart has received a $2.5 billion investment from SoftBank Vision Fund. With this investment, SoftBank has become a large shareholder whereas Flipkart has got about $4 billion excess cash.
With this investment, Flipkart co-founders Sachin and Binny Bansal may get a more active role in the e-commerce portal’s operations. It is also reported that certain changes are to be made in the management structure of Flipkart.
Flipkart and SoftBank Deal
The deal under which SoftBank has made a $2.5 billion investment in Flipkart, is a part of Flipkart’s invitation for investments. With this humongous amount, SoftBank now owns a one-fifth stake in Flipkart.
It has been reported that the deal is going to bring certain changes to Flipkart’s management structure. Firstly, the co-founders Binny and Sachin Bansal are going to play a more active role in the company.
It is also reported that these changes along with a few vital others will be implemented after Flipkart’s Big Billion Day Sale, which is the company’s largest sale that surfaces around Diwali.
What is SoftBank Vision Fund?
SoftBank is a Japanese Mobile carrier, Internet service provider which is also involved in Self-driving cars, Cloud storage, and Energy business. The business is currently headed by Masayoshi Son, who is the company’s founder and CEO.
The Vision Fund is a special fund from SoftBank which amounts to almost $100 billion invested in it by companies like Qualcomm, Foxconn, Apple, and much more, including SoftBank’s home fund.
Sachin Bansal and Binny Bansal commented on the launch saying,
“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”.
Masayoshi Son, Founder and CEO of SoftBank said,
“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”.
SoftBank has earlier funded China-based Alibaba Group and is now funding Indian upstart Flipkart. The Japanese carrier seems to be in some sort of unspoken Duel with Amazon as SoftBank is continuing to fund Amazon’s e-commerce rivals.