SoftBank kicks off secondary share buy from Flipkart investors

Published On: 30, Nov 2017 | Source: business-standard.com

Japanese investment giant SoftBank has reached out to other shareholders of India’s largest e-commerce marketplace with a proposal to buy their stock at a valuation of around $9-10 billion.

The move is part of Softbank’s August commitment to pick up additional stake in through secondary transactions, giving some investors the option to exit the company either fully or partially.

Out of the total $2.5 billion investment commitment, SoftBank will use around $1.2-1.4 billion in buying out shares of other investors. It is expected that Tiger Global, one of the largest shareholders in will sell a substantial portion of its stock to SoftBank, giving it a partial exit. The Mint newspaper reported this first on Thursday.

With both primary and secondary transactions combined, SoftBank’s in could be between 18-20 per cent, giving it significant say on the company’s board. The other big power block on Flipkart’s board is the Tencent-duo- both of whom remain committed to the company. 

Naspers, in its half-yearly financial report on Wednesday, said that it had invested a further $71 million in in April. The company reported that its in the company dropped to 13 per cent after the two subsequent funding rounds that happened later in the reporting period.

led a $1.4-billion funding round in in April this year. is one of the largest shareholders in China’s

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Tiger Global, which has been one of the most prolific venture capital investors in India, is looking at brokering exits from some of its most successful bets here. Business Standard reported last week that SoftBank looking to pick up a 10-12 per cent stake in Ola for around $400-500 million, largely by buying out shares of


SoftBank, with the backing of its $100-billion Vision Fund, is committed to taking long-term bets on e-commerce and ride-hailing globally, and is a key focus area. 
 
The Japanese investment firm has said that the valuation of its in all its Indian amounts to $6 billion, making it the largest venture capital investor in the country.