Softbank chief eyes Indian e-tail, tech pie
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Japanese telecom and
internet giant SoftBank on Monday announced its intent to invest nearly
$10 billion (around Rs 60,000 crore) in India over the next few years,
with Masayoshi Son, the $92 billion conglomerate’s chairman and founder,
expected to kick off investments during his trip to India, where he is
expected to meet several entrepreneurs. Son, the richest man in
Japan, mentioned his intention to invest during a meeting with IT &
communications minister Ravi Shankar Prasad, an official statement said,
adding that India is “top most priority for SoftBank”.
Japan's richest man, who had invested $20 million in Chinese ecommerce
giant Alibaba in 2000, is eyeing investments in e-tailing and technology
companies in India, said sources privy to the discussions. Masayoshi
Son is learnt to have suggested that the Centre speed up the rollout of
telecom infrastructure and quickly move to nationwide 4G services.
SoftBank is leading a $650million financing round in Snapdeal, based in Delhi. It is also pumping in as much as $180 million in taxi hailing startup Olacabs which competes directly with Uber.
Softbank so far runs a joint venture with Indian telecom major Bharti (Bharti Softbank) here and has invested in Bangalore-based mobile advertising network InMobi. The mammoth in vestment plan from SoftBank comes at a time when privately held Indian consumer tech companies are witnessing soaring valuations and seeing investors line up expecting high returns. Sources said SoftBank had also held talks with mobile payments companies Paytm and Freecharge and that Masa will be meeting a few other startups on his India trip.
Fifty-seven-year-old Son is Japan's richest man with an estimated net worth of $20 billion having sur passed Tadashi Yanai, chairman of Fast Retailing which runs Uniqlo, post Alibaba's IPO. SoftBank is the single largest shareholder in the Chinese e-commerce behemoth with a 34% stake in the Jack Ma-led company .SoftBank had acquired the US mobile services provider Sprint in 2012 and had made attempts to buy T Mobile earlier this year ( the bid was later withdrawn) to collectively take on the two biggies AT&T and Verizon in the American mobile market.
SoftBank is expected to have picked up about 20-25% stake in Snapdeal and Olacabs each, however, this could not be independently confirmed by TOI. A venture capitalist on conditions of anonymity said that SoftBank only comes in when it can pick up a significant minority stake in ventures which is the case in both Snapdeal and Ola, he said.
SoftBank is leading a $650million financing round in Snapdeal, based in Delhi. It is also pumping in as much as $180 million in taxi hailing startup Olacabs which competes directly with Uber.
Softbank so far runs a joint venture with Indian telecom major Bharti (Bharti Softbank) here and has invested in Bangalore-based mobile advertising network InMobi. The mammoth in vestment plan from SoftBank comes at a time when privately held Indian consumer tech companies are witnessing soaring valuations and seeing investors line up expecting high returns. Sources said SoftBank had also held talks with mobile payments companies Paytm and Freecharge and that Masa will be meeting a few other startups on his India trip.
Fifty-seven-year-old Son is Japan's richest man with an estimated net worth of $20 billion having sur passed Tadashi Yanai, chairman of Fast Retailing which runs Uniqlo, post Alibaba's IPO. SoftBank is the single largest shareholder in the Chinese e-commerce behemoth with a 34% stake in the Jack Ma-led company .SoftBank had acquired the US mobile services provider Sprint in 2012 and had made attempts to buy T Mobile earlier this year ( the bid was later withdrawn) to collectively take on the two biggies AT&T and Verizon in the American mobile market.
SoftBank is expected to have picked up about 20-25% stake in Snapdeal and Olacabs each, however, this could not be independently confirmed by TOI. A venture capitalist on conditions of anonymity said that SoftBank only comes in when it can pick up a significant minority stake in ventures which is the case in both Snapdeal and Ola, he said.
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