Masayoshi Son confirms SoftBank is still in talks to back Flipkart

This, despite SoftBank-backed Snapdeal backing out from a merger deal with Flipkart

Masayoshi Son, chairman and CEO of the SoftBank Group, confirmed that the company was in talks to invest directly in Flipkart, India’s largest e-commerce marketplace.
 
“We respect the decision of the Snapdeal founders and we are engaged with Flipkart,” Son said during the firm’s earnings briefing on Monday, without revealing any further details. SoftBank-funded Snapdeal recently called off merger talks with Flipkart.
 
Sources had revealed to Business Standard last week that the SoftBank Vision Fund was in talks to invest up to $2 billion in Flipkart. Son’s statement confirms this.
 

SoftBank had earlier tried to take on Amazon through Snapdeal but since the US retailer became India’s second largest e-commerce marketplace, it has written off its $900-million investment in Snapdeal. Not all of the $2 bn SoftBank is planning to invest in Flipkart will go towards helping the company fight off Amazon. About half the investment will be used to buy a part of investor Tiger Global’s stake in the company, while the rest will be ploughed into building a war chest.

 
The move will not only give SoftBank a sizeable shareholding in Flipkart, which in April raised $1.4 bn at a valuation of $11.6 bn, it will also reduce Tiger Global’s prominence on the Indian firm’s board. The US hedge fund calls the shots at Flipkart with its nominee Kalyan Krishnamurthy in the position of CEO. An investment by SoftBank will help Flipkart mobilise funds to take on Amazon. SoftBank, on its part, is looking for its next Alibaba, where it can turn a $20 mn investment into $50 bn.

Masayoshi’s interest in Uber, Lyft

SoftBank Group’s Masayoshi Son expressed interest in the US ride-hailing market, saying he would be willing to invest in Uber or rival Lyft. It’s the clearest indication yet that Son is serious about putting cash on the table. SoftBank has backed Uber’s competitors elsewhere, including China’s Didi Chuxing, India’s Ola and Grab in Southeast Asia, fuelling the notion that Son is helping organise an anti-Uber alliance.    

Bloomberg