This will lead to more innovations coming into the market in terms of making better customer experience and also the companies would now work towards getting a better hold in the smaller towns and cities, Gururaj said adding that the consumers can now expect better deals and discounts. However, Amazon has been a mighty challenger to the homegrown market leader Flipkart in India. But deal talks broke down last week, so SoftBank has now moved on and is investing in Flipkart directly.
In India, investments by Son, with SoftBank and the Vision Fund, is valued at over $6 billion, with stakes in taxi-hailing app Ola, hotel room aggregator Oyo Rooms, advertisement aggregator InMobi, a joint venture with Bharti Enterprises and Foxconn for setting up solar and wind farms, besides those in Snapdeal and Paytm. Overall, the shopping company now has $4 billion (£3.1 billion) in cash.
Co-founders of Flipkart, Binny Bansal and Sachin Bansal said, "This is a monumental deal for Flipkart and India". "We look forward to the results of the Snapdeal 2.0 strategy and to remain invested in the vibrant Indian e-commerce space", he said in a statement last month. We want to support innovative companies because they are best positioned to leverage technology. They are continuing their marketing leadership.
"SoftBank's proven track record of partnering with transformative technology leaders has earned it the reputation of being a visionary investor".
Soft Bank has been spanning over Dollars of 6 billion in India e-commerce like digital payments, digital payments, ride sharing and hospitality.
An acquisition in these verticals will solve the difficulty of building a supply chain for these specialised categories, "To match up, Flipkart will have to invest at least as much as Amazon, and grocery will be important to increase wallet share", said Satish Meena, senior forecast analyst at Forrester. In January 2017, it was reported that SoftBank Capital, will facilitate its investments in India via its $100 Bn tech focussed fund, Vision Fund.
"India is a land of vast opportunity", said Masayoshi Son, Founder, Chairman, and CEO of SoftBank Group.
This was especially significant as Flipkart is competing against the cash-rich Amazon.