A group of investors including Japan's Softbank are reportedly in talks to buy a 20% stake in fast-growing Indian smartphone maker Micromax.
The investment could be worth up to $1 billion, valuing Micromax at up to $5 billion, Reutersreported, citing sources.
The sale will involve existing Micromax investors selling the 20% stake, one of the sources said. Micromax is controlled by its founders and its major investors include private equity firms Sequoia Capital and TA Associates.
Micromax entered the Indian handset market in 2008, and has quickly grown to challenge Samsung for dominance of the local smartphone market. The company recently created a separate brand – Yu - for affordable 4G smartphones based on the CyanogenMod Android fork
Softbank CEO Masayoshi Son last year revealed intentions to invest $10 billion into India's technology and online commerce sectors, starting with a $627 million investment in Indian online marketplace Snapdeal. The the Micromax investment could form part of this plan.