Japanese telecommunications company Softbank Corp. is investing nearly $840 million in two technology companies in India, eyeing what it sees as a lucrative market for growth.
Softbank said Tuesday it is investing $627 million and becoming the biggest shareholder in Snapdeal, the largest digital marketplace in India with 25 million users and 50,000 businesses. It brings together products from thousands of big and small brands.
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The Tokyo-based company, which recently acquired Sprint in the U.S., is also investing $210 million in Ola Cabs, which runs the technology to connect consumers with cab drivers in India.
Softbank executives said they were banking on India because it has a large number of Internet users, the online market is not yet saturated and connection speeds are likely to get faster.