After the week of deliberation, Tokyo-based multinational conglomerate holding company, SoftBank recently announced that it has agreed to sell its 21% Flipkart sell to Walmart, an American retail corporation. Last year, Softbank invested approximately $$2.5 billion in Flipkart through its Vision Fund and now expected to make around $4 billion on its investment
Masayoshi Son, Japanese telecom and Internet giant’s head said he was still undecide on the scale. SoftBank had been in discussions to stay invested in Flipkart and possibly delay the scale because of the tax issues. Vision Fund’s registration in Jersey does not have a tax treaty with India. Now, it is ready to sell the Flipkart sell and work out the tax issues.
According to the sources information, SoftBank has invested $400 million in Paytm Mall along with $1.4 billion in Paytm owner One97 Communications. Apart from this, SoftBank’s other investments in India mainly include Oyo, hotel rooms player and cab aggregator Ola.
last month, the retail giant announced that it become shopping for a seventy-seven% stake in Flipkart for approximately $sixteen billion India is a completely unique market witnessing a three-manner warfare related to US retail majors Walmart and Amazon, and China’s Alibaba.
Walmart’s foray into India’s online retail area set the degree for an American business warfare in opposition to Amazon.com within the world’s fifth largest economy.