India could be the next market to explode in a good manner, according to former president and COO of SoftBank Nikesh Arora. Arora also stressed that it would be difficult to predict a clear winner in e-commerce sector in the country, Times of India quoted Arora as saying to Bloomberg. Arora, however, said that one should be cautious betting against Chief Executive Officer of Amazon Jeff Bezos. His remarks came days after SoftBank Vision Fund had invested in Flipkart to become one of its largest shareholders, PTI reported on August 10.
“If China could be so successful with over a billion people then maybe we should be concentrating on India as it could be the next market to explode in a good way and we should be investing there,” Arora was quoted as saying by TOI. He also said it is a good time to invest “in e-commerce with Flipkart and Snapdeal.” Talking about Flipkart’s rise and the present situation of Snapdeal, Arora said,”As you’ve seen Flipkart has been able to generate the resources ( referring to its $2.5 billion funding round) and Snapdeal was unable to do so in the process. If Snapdeal had ended up with a similar backer who’d given them billions of dollars to do it.”
On August 10, Flipkart in a statement, said: “The investment is part of the previously announced financing round, where Flipkart had raised capital from three of the worlds premier technology companies – Tencent, eBay and Microsoft. After this financing round, Flipkart will have in excess of USD 4 billion of cash on balance sheet.”
Without disclosing the amount invested, the company said: “This is the biggest ever private investment in an Indian technology company,” according to PTI report.