Indian e-commerce giant Flipkart is reportedly on its way to raise $500 Million of funding from Japanese investment firm Softbank. With this investment, Softbank will acquire higher stakes in Flipkart as reported in FactorDaily.
The report further added that SoftBank has planned a $2 billion investment in Flipkart, a part of which will be primary funding. “The entire money is not coming as a primary investment. Effectively, Flipkart will get only $500 million out of the $2 billion as primary funds,” said the second source.
In a recent turn of events, Flipkart offered $750 million to $800 million for Snapdeal after it completed the due diligence for acquiring the company. Snapdeal’s board, where SoftBank holds two of the right sears, rejected the offer. Flipkart had earlier agreed to pay $1 billion to Snapdeal.
Once the Snapdeal-Flipkart merger is complete, the Masayoshi Son-headed Japanese telecom and Internet conglomerate Softbank will have two seats in the newly-merged entity.
According to sources, SoftBank is planning a $2 billion investment in Flipkart, as part of a primary funding. “The entire money is not coming as a primary investment. Effectively, Flipkart will get only $500 million out of the $2 billion as primary funds,” said a source in the report. Read more about Indian Startup Ecosystem.
Love playing sports? Download this app "Win cash rewards while playing sports that you love".