You are here: Home » Companies » News
Business Standard

Flipkart, Paytm own 60% of their markets: SoftBank's Masayoshi Son

SoftBank has claimed that the cumulative valuation of its investments in India is $6 billion

Alnoor Peermohamed  |  Bengaluru 

Billionaire Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp, arrives for a news conference at the Tokyo Stock Exchange in Tokyo, Japan, on Monday.
Billionaire Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp, arrives for a news conference at the Tokyo Stock Exchange in Tokyo, Japan, on Monday

Masayoshi Son, founder and chairman of Japanese investment giant SoftBank, claimed that the company’s two largest investments in India — and — enjoy majority market share in their respective spaces, and were ahead of their local and global rivals. During the announcement of SoftBank’s quarterly results, Son made a case for the company’s $100-billion Vision Fund, from which the two Indian firms received a combined $3.9 billion this year. “Flipkart, India’s number one e-tailer has 60 per cent share in the domestic market and is bigger than India. It is very difficult to see someone who is bigger than Amazon,” Son said on Monday. “I believe, after China in terms of size, India should be next, and in a market with such huge potential has 60 per cent market share which is a good start.” claims it has captured 70 per cent of India’s market after seeing huge success in the recent festive sale period, and is almost twice the size of its rival The company is aggressively looking at expanding its market share after raising $1.4 billion led by Tencent and another $2.5 billion from earlier this year. Son said the Vision Fund’s other big investment in India, Paytm, controls 58 per cent of the digital payments market, and that the company had grown by 230 per cent year-on-year in the 12 months to March 2017. graph “In China, Alipay has been successful as a business model and Alipay and support Again, thanks to the Alibaba Group, we are the second-largest shareholder in Paytm,” Son added. was benefitted massively from the government’s demonetisation exercise in November last year, which helped it extend its lead over rivals such as FreeCharge and MobiKwik.

So far, India’s digital payments had space lacked a large foreign player, but with the recent entry of Google’s Tez and the upcoming launch of WhatsApp payment feature, is likely to face competition. While Son is bullish on India’s market, his past bets have not panned out as planned. After investing nearly $1 billion in Snapdeal, he was forced to write it off as a loss, when began cannibalising its market share, and overtook it to become the second-biggest marketplace in India. An attempt to merge Snapdeal with earlier this year failed, after which decided to invest independently.

First Published: Tue, November 07 2017. 01:12 IST
RECOMMENDED FOR YOU