In 2018, SoftBank Group Corp sold its entire stake in Flipkart to Walmart Inc. As per reports, again after three years it is in talks with the e-commerce giant to invest $700 million. Canadian pension fund, CPPIB, and GIC are also in talks to invest in Flipkart.
According to sources, the intended investment in Flipkart by SoftBank from its SoftBank’s Vision Fund 2 is a part of $1.2- 1.5 billion funding round. It is assumed that the transaction will value Flipkart at $28 billion and the agreement is supposed to close in 3-4 months. The source further added that the transaction will precede a proposed listing of Indian e-commerce giant slated to be in the coming 12-18 months.
Another source revealed that the transaction could value the e-commerce giant, Flipkart at nearly $30 billion depending on the final set of investors. The person assumed that Prosus Venture, the investment arm of South African conglomerate Naspers, and other existing investors could raise their stake. The investors signing up for the ongoing round expect Flipkart’s valuation to rise to around $35-40 billion by then, the source added.
The sources too stated that Flipkart is unlikely to move for another funding round before its IPO. Transactions for Flipkart are being managed by JPMorgan and Goldman Sachs.
In August 2017, SoftBank Vision Fund 1 invested $2.5 billion in Flipkart but sold it 20 percent stake within a year to Walmart. Walmart agreed to buy a controlling stake in the startup for $16 billion. SoftBank sold its stake for $ 4 billion, netting $1.5 billion in profit.
In the previous month, SoftBank’s investment in banking tech firm Zeta valued the firm at more than $1 billion. Its aim to invest in OfBusiness is also set to catapult the business-to-business marketplace to unicorn club. SoftBank Vision Fund 2 is also looking forward to invest in food delivery unicorn Swiggy.
SoftBank and JP Morgan denied to voice about the phenomenon. Flipkart, Prosus, Goldman Sachs Venture, GIC and CPPIB too did not comment.