SoftBank Group Corp is in talks with Flipkart to invest $700 million in the e-commerce giant, three years after the Japanese conglomerate sold its entire stake in the Indian company to Walmart Inc, according to a report in Mint.
SoftBank’s proposed investment in Flipkart will be part of a $1.2-1.5 billion funding round under its Vision Fund 2, Mint reported citing persons aware of the development. The deal, which is expected to close in 3-4 months, is likely to value Flipkart at $28 billion., the report said. The transaction will precede a proposed listing of the Indian e-commerce giant, slated to be in the next 12-18 months. SoftBank had sold its stake in Flipkart to Walmart for $4 billion in May 2018, netting $1.5 billion in profit.
The Flipkart IPO may get delayed If the SoftBank capital comes in as part of a larger $2 billion funding round, said another report by The Economic Times. Sovereign wealth funds such as Abu Dhabi’s ADQ and Canada Pension Plan Investment Board (CPPIB) are expected to participate in this round, the ET report said. Existing investors such as GIC and Qatar Investment Authority may also invest. Investment banks JPMorgan and Goldman Sachs are reportedly advising Flipkart on the transaction.
Last July, Walmart led a $1.2-billion investment in Flipkart, valuing the e-commerce firm at $24.9 billion. In 2018, Walmart Inc invested USD 16 billion for acquiring 77 per cent stake in the group.