Despite Snapdeal merger failure, SoftBank may invest $2 billion in Flipkart

Japanese conglomerate SoftBank may invest $2 billion in India's largest ecommerce player Flipkart through its $100 billion Vision Fund in the wake of rival Snapdeal calling off the proposed merger with the etailer.

The funding will give Flipkart more ammunition in its fight for market share with deep-pocketed US-based juggernaut Amazon. "SoftBank, through SoftBank Vision Fund, is in discussions with Flipkart to invest between USD $1.5-$2 billion," sources said.

The Masayoshi Son-led company, an investor in troubled Snapdeal, was looking to invest in Flipkart as part of the merger. SoftBank was reportedly looking at picking up equity in Flipkart. However, with the five-month-long talks between Snapdeal and Flipkart collapsing, Softbank could now still go ahead and invest in Flipkart, the sources added.

SoftBank, which has investments in Indian start-ups like Snapdeal and cab aggregator Ola, had committed investments worth $10 billion in India in 2014. In May this year, Soft-Bank pumped in $1.4 billion (over Rs 9,079 crore) digital wallet company Paytm. A SoftBank spokesperson said Soft-Bank Vision Fund independently evaluates each investment on its own merit. SoftBank Vision Fund, founded by SoftBank Group chairman Masayoshi Son, operates as a separate entity.

It also has participants like Apple, Foxconn and Public Investment Fund of the Kingdom of Saudi Arabia. Flipkart did not respond to emailed queries. Meanwhile, Flipkart on Tuesday completed its merger with eBay India's operations, which will allow customers to eventually shop from a wider array of products. Flipkart will own and operate eBay.in, which will remain an independent entity as part of Flipkart, the company said in a statement.

Besides, the companies will also partner to leverage opportunities in cross-border trade. As a result, Flipkart customers will get expanded product choices with the wide array of global inventory available on eBay while eBay customers will have access to a more unique Indian inventory from Flipkart sellers, the statement said.