SoftBank Group Corp is in talks with Flipkart to invest $700 million. This proposed investment is part of SoftBank Vision Fund 2's $1.2-1.5 billion funding round. With this funding, Flipkart that sold its entire stake to Walmart three years ago, will be valued at around $28 billion.
However, depending on the final set of investors, Flipkart's valuation could go up to as much as $30 billion, as mentioned in a report in Livemint. People in the know told the daily that the investment arm of Naspers, Prosus Ventures, and other existing investors could also raise their stakes.
The transactions are expected to follow through before the online giant's proposed listing in the next 12-18 months. The e-commerce giant is likely to go for another funding round before its IPO. JPMorgan and Goldman Sachs are managing the transaction for Flipkart.
Flipkart and PhonePe, the digital payments arm, are planning to go public in the US by 2022. By that time, the online giant is eyeing a valuation of about $40 billion.
Singapore sovereign wealth fund GIC and Canadian pension fund CPPIB are also in talks to invest in Flipkart.
This is not SoftBank's introduction to Flipkart. The conglomerate was an investor in Flipkart but exited in May 2018. Before its exit, SoftBank Vision Fund 1 had invested $2.5 billion in the company in August 2017. It sold its approximately 20 per cent stake within a year after Walmart came into the picture.
Now, SoftBank Vision Fund 2, is planning to invest aggressively in India. It is set to invest in Swiggy and banking tech firm Zeta, which was valued at more than $1 billion last month.