SoftBank Vision fund seeks to invest up to $2 billion in Flipkart

Japan'sSoftBankis still keen to take a stake in Indian e-commerce firmFlipkartand is intalkstoinvestupto $2billionin the company throughitsVisionFund, a source familiar with the matter said on Tuesday.

Softbankhad hoped to secure a sizeable stake inFlipkartby engineering a share swap between Flipkartand smaller domestic rival Snapdeal, as the Japanese groupis Snapdeal's biggest shareholder. But that plan collapsed on Monday when Snapdeal said it had decided to remain independent and was ending alltalksregarding a sale.

Three sources saidSoftBankfounder Masayoshi Son still wants toinvestinFlipkartthrough his visionFund, in which Saudi Arabia is also a major stakeholder.

The first source saidtalksabout aninvestment ofupto $2billionwere underway and a deal betweenSoftBankandFlipkartcould be sealed within a month.

TheVisionFund's plannedinvestment is not dependent on a deal between Snapdeal andFlipkart, one of the sources said.

All sources declined to be identified as the discussions are not public.

Flipkart, the most significant challenge to US retail giant Amazon in India, declined to comment on the matter.

SoftBank, which has alsoinvested in Indian online grocer Grofers and cab hailing firm Ola, said itsVisionFund"follows an independent process and judges everyinvestment onitsown merit."

Bloomberg reported earlier on Tuesday that theFundcouldinvestbetween $1.5billionand $2billioninFlipkart.

TheVisionFundhas raised more than $93billionfrominvestors including Saudi Arabia's main sovereign wealthfundand Apple.