Masayoshi Soft-LED Softbank Group Corp is in talks with Flipkart to invest $ 700 million in e-commerce giants, according to reports by economic time and mint. Japanese Softbank wants to invest in Flipkart, three years after it sold all its shares in the company to Walmart Inc., the largest retailer in the world.
It has been reported that financing is part of a larger $ 2 billion round. Wealth Sovereign Funds such as Adu Dhabi ADQ and Canada Plan Investment Plan (CPPIB) are expected to participate in this round. Existing investors such as the GIC and Qatar investment authorities can also invest. Transactions tend to respect Bengalaru-based companies at $ 25-30 billion.
Last July, Walmart led $ 1.2 billion in Flipkart, assessing e-commerce companies at $ 24.9 billion. The company based in Bentonville (in Arkansas) was locked in a battle with the US rival Jeff Bezos – Amazon’s LED Reliance and Mukesh Ambani, Jiomart for dominance in India’s online retail market through Flipkart, which was purchased for $ 16 billion in 2018.
Flipkart and Phonepe belong to Walmart, a digital payment company, plans to go public in the US in 2022. The source said Flipkart was eyeing an assessment of around $ 40 billion for IPOs. However, it has been reported that new Softbank funds can delay the planned IPO Flipkart and the company can remain private for a longer time.
Before exiting in 2018, Softbank had previously invested $ 2.5 billion in Flipkart. Technology conglomerates invest in Flipkart when players such as Reliance Industries and Tata also bet big on e-commerce and make acquisition. The Jio Reliance platform has collected billions of dollars from investors including Facebook and private equity companies such as Silver Lake and KKR.
