SUMMARY
The comments come after SoftBank’s net loss fell to $3.3 Bn (477.6 Bn Yen) in the quarter from $24.5 Bn (3.16 Tn Yen) during the same period last year
SoftBank’s India portfolio – Zomato, Paytm, Delhivery and PB Fintech – cumulatively contributed gains of $400 Mn to the kitty of SoftBank Vision Fund 1
SoftBank Vision Fund also said it will begin investing after a prolonged period of inactivity, even as the SoftBank group logged $3.3 Bn in net loss
Four of SoftBank’s portfolio companies – Swiggy, Lenskart, FirstCry and OfBusiness – are gearing up for an initial public offer (IPO), according to Navneet Govil, executive managing partner and CFO of SoftBank Vision Fund.
Speaking with ET, Govil said these startups are at various stages of preparing for their IPOs, with companies like FirstCry expected to file their draft IPO papers by the end of 2023.
SoftBank’s India portfolio – Zomato, Paytm, Delhivery and PB Fintech – cumulatively contributed gains of $400 Mn to the kitty of SoftBank Vision Fund 1 during the quarter ended June 30, 2023.
The comments come after SoftBank’s net loss fell to $3.3 Bn (477.6 Bn Yen) in the quarter from $24.5 Bn (3.16 Tn Yen) during the same period last year. At the same time, SoftBank’s Vision Fund swung to a profit after six straight quarters of losses.
Govil added that 93% of the storied Japanese investor’s portfolio – 473 startups – have a positive cash runway of more than 12 months amid the ongoing correction that has hit the global tech world, leading to widespread downsizing.
SoftBank Vision Fund also said it will begin investing after a prolonged period of inactivity, even as the SoftBank group logged $3.3 Bn in net loss.
Speaking about the portfolio’s financial health, Govil said two-thirds of SoftBank Vision Fund’s portfolio is already generating cash or will soon be doing so without needing incremental capital. One-fourth of the portfolio is showing topline growth of more than 50%, while 40% of the portfolio clocked topline growth of more than 25% in this market, added Govil.
Further, the CFO added companies that aren’t going to do well have been identified and have been written down, quite significantly.
As for exits and sale of shares in publicly listed portfolio companies in India, Govil said once they go public, SoftBank would, at some point, sell its shares to monetise. “We, of course, wait for the lock-in period to get over and a good example of that is Uber, where we made $7.7 Bn in investments and have completely exited now,” he added.
Selling Indian Stake
Over the past few months, SoftBank has sold significant stakes in both public and private companies in India. The fund recently sold a part of its holding in Lenskart during the eyewear brand’s $600 Mn funding round, most of which was through a secondary share sale.
Further, SoftBank also has been in talks to dilute its holding in FirstCry in a pre-IPO deal.
The Japanese firm is estimated to have snagged $90-100 Mn from the Lenskart deal. In March, it raked in around $130 Mn by liquidating shares in Delhivery. Further, SoftBank also part sold its stake in Paytm worth $180-200 Mn.
