SoftBank, the world’s most influential technology investor, is in talks to double down on its bet on e-commerce roll-up firm GlobalBees. The Japanese tech investor is leading a $100 million round in GlobalBees via a convertible note, promising a valuation of $500 million a year or so down the line, said three people aware of the matter, on condition of anonymity.
A convertible note means that SoftBank will invest in debt, which will convert to equity at a future date. Often, these arrangements take place with a predetermined price. Such a structure helps justify an aggressive valuation — GlobalBees may have grown to justify the valuation later on. It also helps SoftBank increase its stake in GlobalBees before other external investors come in, a person close to the firm said.
Raising debt is also key to its business model of acquiring companies, as Moneycontrol reported earlier.
SoftBank declined to comment while GlobalBees did not respond to a query seeking comment