Flipkart added $4 billion cash from Softbank to compete Amazon

Flipkart increased its cash reserves by more than $ 4 billion after obtaining new funding from Softbank Group. India's largest e-commerce on Thursday announced fund-raising from SoftBank's Vision Fund in unspecified amounts. This latest investment to raise capital in the battle against major competitors is Amazon India in the South Asian market.

Tinuku Flipkart added $4 billion cash from Softbank to compete Amazon

Flipkart does not disclose the amount but says the SoftBank investment consists of a combination of primary and secondary capital. Earlier reports said SoftBank would invest more than $ 1.5 billion by investing in new capital and buying shares from Tiger Global Management as the largest shareholder of Flipkart.

"This is a monumental agreement for Flipkart. SoftBank's track record of partnering with transformative technology leaders has built them as visionary investors," Flipkart founder Binny Bansal and Sachin Bansal said in a statement.

The Bengaluru-based company has been negotiating to acquire a New Delhi-based Snipdeal as a foothold against the larger competitor Amazon India. Negotiations for five months had finally failed to agree.

Softbank Investment is claimed to be the largest private investment in Indian technology companies and Vision Fund becomes one of the largest shareholders in online retailers. The fund is part of the latest round of financing to Flipkart which has raised $ 1.4 billion by Tencent, eBay and Microsoft in April.

"We want to support a clear innovative company in India because they have the best position to take advantage of technology and help people live a better life. As a pioneer in Indian e-commerce Flipkart did it," said SoftBank Group Corp CEO Masayoshi Son.