Softbank to Invest $1Bn In Micromax At $5Bn Valuation

The news comes at a time when Micromax is on the verge of overtaking Samsung as India’s largest smartphone manufacturer.

A group of investors led by Japanese telecom giant Softbank are apparently in talks to buy a 20% stake in  Indian mobile manufacturer Micromax for $1 billion.
micromax_new_logo.jpgAccording to a Reuters report, the investment would value the unlisted mobile device manufacturer at $5 billion.
Delhi-based Micromax is currently the second largest smartphone manufacturer in the country, and is on the verge of overtaking Korean giant Samsung as it grapples with falling sales.
As per Reuters, Micromax is looking to raise between $800 million and $1 billion. The company which is privately held by its founders, counts Sequoia Capital and TA Associates as investors.
Xiaomi, which is fast challenging Samsung’s dominance and is even a competitor to Micromax, is considered to be the world’s most valuable startup. Last December, the company raised $1.1 billion at a valuation of $45 billion from investors such as GIC Pte. Ltd, DST Global, All-Stars Investment Ltd, and Yunfeng Capital.
SoftBank’s investment in Micromax may not be directly related to its plan to invest $10 billion in Indian e-commerce companies over the next few years. However, with online shopping being increasingly driven by low-cost mobile devices, there definitely is a correlation.
[Update: The source of this article had earlier been wrongly credited to Livemint instead of Reuters. The article now reflects the change]

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