Softbank on Wednesday announced that it will invest US$1 billion in Korean e-commerce company Coupang.
The Japanese telco said the investment will close at the beginning of July. It did not disclose what size of stake it will take in Coupang.
The funding will enable the online retailer to invest in its business, including the expansion of R&D offices in the U.S., Shanghai and Seoul.
"This milestone investment from one of the greatest IT investors in the world provides even more financial strength and flexibility to expand our operations and redefine what a great end-to-end customer on line shopping experience is all about," said Bom Kim, Coupang founder and CEO.
The move forms part of Softbank CEO Masayoshi Son’s strategy of achieving growth by investing in tech and Internet companies.
Earlier this week, the telco increased its holding in Finnish mobile gaming company Supercell to 72.3% and earlier in the year it was linked with a hefty investment in Indian low-cost handset manufacturer Micromax Informatics. Last year Softbank ploughed $837 million into Indian firms Snapdeal and Ola Cabs, amongst other investments, and the IPO of China’s Alibaba in September left it with a 34% stake worth around $70 billion.
Following the Softbank investment, Coupang will be valued at around $5 billion, an unnamed source with firsthand knowledge of the situation told Bloomberg.
