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Uncertain over stake sale in Flipkart, SoftBank now eyes a slice of Zomato

Somya Lohia
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Walmart-Flipkart saga: SoftBank yet to decide its exit timeline, taxman says their decision crucial

According to an official in the Income Tax department, the overall tax liability pertaining to this deal will depend on the timeline of SoftBank’s exit from Flipkart

Moneycontrol News

As uncertainty looms large over SoftBank’s decision to sell its stake in Flipkart to Walmart, the Japanese technology conglomerate is certainly weighing multiple investment opportunities in Indian startups.

After investing USD 400 million for a 21% stake in Paytm Mall, the Japan-based Internet giant is now looking to invest in online restaurant discovery and food delivery firm Zomato, as per a report in The Economic Times citing sources.

SoftBank’s move, which comes after its talks with Bengaluru-based Swiggy to explore possibilities of funding to the tune of USD 200-250 million in the company, is an indication of its its target to play the role of kingmaker in the food delivery market.

It has also held several rounds of discussions with Swiggy but the firm is sceptical over the deal as it is of the view that it is “still little early to raise a large cheque from the Japanese firm,” sources told the paper.

SoftBank’s investment in Paytm Mall, which took place in April this year, has been called as the largest investment of the month. This was followed by couple of deals in the life sciences sector - USD 350 million investment in Mankind Pharma by ChrysCapital GIC and CPPIB for a 10 per cent stake, and Apax Partner's USD 350 million acquisition of Healthium Medtech, a maker of surgical equipment.

(With inputs from PTI)