Advised Softbank on a US$25 million investment in Findability Sciences LLC and its Indian subsidiary

Softbank, a global investment giant, committed US$25 million to Findability Sciences LLC, a U.S.-based artificial intelligence company having an Indian subsidiary. This investment underscores Softbank’s interest in advancing artificial intelligence-driven solutions across industries. Majmudar & Partners ensured the transaction complied with Indian regulatory requirements, facilitating a smooth and efficient process.

Facilitating the Transaction

Majmudar & Partners’ contributions included:

  • Regulatory Compliance Advisory: Provided comprehensive guidance on compliance with Indian foreign exchange regulations under the Foreign Exchange Management Act (FEMA), 1999 and advised on structuring the investment to align with both Indian and U.S. regulatory frameworks.
  • Due Diligence on the Indian Subsidiary: Conducted an exhaustive legal due diligence of the Indian subsidiary, identifying potential legal and regulatory risks and advising on mitigation strategies to safeguard Softbank’s investment.
  • Review and Negotiation of Transaction Documents: Reviewed and negotiated critical transaction documents, including the share subscription agreement and shareholders’ agreement, ensuring adherence to Indian corporate law and the client’s commercial objectives.
  • Tax Structuring Advice: Delivered insights on tax-efficient structuring for the Indian subsidiary, addressing issues related to withholding tax, capital gains, and transfer pricing, while ensuring compliance with Indian tax laws.
  • Cross-Border Coordination: Collaborated with international legal teams to align Indian regulatory requirements with global transaction goals, ensuring seamless execution across jurisdictions.

Softbank’s investment in Findability Sciences LLC positioned the company to further innovate in artificial intelligence and expand its capabilities in the Indian market. Majmudar & Partners’ expertise in cross-border investments ensured a legally robust and strategically advantageous transaction for both parties.

Majmudar & Partners has extensive experience in handling cross-border private equity transactions and investments. Partner with us for legal excellence in navigating the complexities of Indian regulatory and tax landscapes. Contact us today to learn more.

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