Softbank is looking to buy into Indian low-cost handset manufacturer Micromax Informatics, it emerged late last week.
The Japanese mobile operator is heading up an investment group that is in talks to acquire a 20% stake in the firm for US$800 million-$1 billion, Reuters reported, citing unnamed sources.
The sources said that the sale could bring the exit of existing investors, which include Sequoia Capital and TA Associates, and could eventually pave the way for a listing of the company.
Micromax became the leading smartphone maker in its home market in the fourth quarter of last year, shipping more devices than Samsung, according to statistics published by Canalys last month.
The firm has been particularly successful in its appeal to customers switching up from feature phones to smartphones, but its higher-end devices have also proved popular, the analyst firm said.
As a result, Micromax captured 22% of India’s smartphone market in Q4 last year. Samsung came in second, followed by Indian companies Karbonn and Lava.
Softbank declined to comment on the reports of its interest in the company, Reuters said.
However, last year the Japanese firm’s CEO Masayoshi Son shared plans to "deploy significant capital in India over the next few years."
His comments came after Softbank announced it would spend $627 million to become the largest investor in Indian online retailer Snapdeal, as well as ploughing $210 million into taxi bookin g application Ola Cabs.
At the time the Financial Express speculated that Softbank’s Indian investment could reach $10 billion in the coming years.
