National Investment and Infrastructure Fund (NIIF), India’s sovereign wealth fund, is said to be in talks to invest in Softbank-backed e-commerce player FirstCry, reports Economic Times.
The development gains much significance given that if the investment materialises, it would mark NIIF’s maiden investment in the country’s booming internet economy. It could also set the stage for NIIF to invest in other Indian technology startups.
According to the report, NIIF’s investment in FirstCry will be through a secondary transaction of around $150-200 million, wherein some of the early investors will sell part of their stakes in the company. It is expected that Softbank’s 40 per cent stake in the FirstCry will come down once the ongoing funding round is closed formally. At present, Softbank is the single largest investor in FirstCry.
The transaction is likely to take place at a valuation of a little over $2 billion.
It should be noted that in March, FirstCry had raised around $315 billion from notable investors like TPG, ChrysCapital and Premji Invest.
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