SoftBank is currently looking forward to acquire a 20% stake in Micromax, according to a report from Reuters. A group of investors led by Japanese telecom giant will make an investment of $1 billion in the Indian mobile manufacturer Micromax.
If the deal comes through, as per the speculations, Micromax could be valued at $5 billion. The company which is privately held by its founders, counts Sequoia Capital and TA Associates as investors. Founded in 2008, Micromax is known for its affordable smartphone range and giving a tough competition to Samsung. In February, research firm Canalys said Micromax overtook Samsung in the fourth quarter as the leading supplier in India’s booming smartphone market, though Samsung later challenged the finding.
Xioami which also been targeting Indian market with its devices raised $1.1 billion at a valuation of $45 billion from investors in December last year. Meanwhile, SoftBank had announced earlier that it will invest about $10 billion in the country’s ecommerce sector after it took a strategic stake in online marketplace Snapdeal.