After the Walmart-Flipkart deal, SoftBank has finally decided to sell its entire stock of over 20% to Walmart for an estimated $4 Billion. The Japanese investor invested nearly $2.5 billion in Flipkart through its Vision Fund last year.
SoftBank took time to arrive at a final decision in order to avoid the tax liability involving the sale of its stake. The company also wanted to wait to sell its stake until Flipkarts valuations picked up further in the near future.
Meanwhile, SoftBank, which has made sizeable investments of about $400 million in Paytm Mall and over $1 billion in its parent company One97 Communications, is reportedly in talks to invest another big chunk of millions of dollars into Paytm Mall, which is the third largest e-commerce firm in India which also counts Chinese giant Alibaba as one of its investors.
With this development, the country will see three large e-commerce firms Walmart-Flipkart, Amazon and Alibaba-Paytm Mall take on each other to gain dominant share in the e-commerce market.