SoftBank Announces Second Vision Fund With A Corpus Of $108 Bn

SoftBank Announces Second Vision Fund With A Corpus Of $108 Bn

SUMMARY

The first SoftBank Vision Fund was launched in 2017 with a corpus of $100 Bn

Vision Fund is a technology-focused investment corpus of the Japanese conglomerate

SoftBank's India portfolio include Ola, OYO, Paytm, Grofers, Delhivery and more

Japanese conglomerate SoftBank has launched its second technology-focussed investment corpus, SoftBank Vision Fund II, with an outlay of $108 Bn. The fund claimed to have received commitments from technology majors such as Apple and Microsoft.

Other investors in the fund include National Investment Corporation of National Bank of Kazakhstan, Standard Chartered Bank, and some undisclosed investors from Taiwan. Further, SoftBank will be investing $38 Bn in the fund along with other committed investors including Foxconn, MUFG, SMFG and Mizuho, the Japanese conglomerate said in a statement.

A SoftBank statement added, “The objective of the fund is to facilitate the continued acceleration of the AI revolution through investment in market-leading, tech-enabled growth companies.”

Earlier at SoftBank Group’s 39th annual general meeting of shareholders, CEO Masayoshi Son had noted that artificial intelligence is going to be the biggest revolution in human history and said, “We envision SoftBank Group to lead the AI revolution similar to how a conductor leads an orchestra.”

He had then also mentioned SoftBank’s investments such as Guardant, OYO, Uber, and ByteDance which have emerged as AI innovation leaders.

Further, SoftBank Group’s earnings before interest and taxes (EBITDA) were reported to have crossed over $18.5 Bn (2 Tn JPY) in FY18. Son had attributed this growth to its tech-centric investment corpus SoftBank Vision Fund I.

Masayoshi Son had then projected that the firm’s portfolio could potentially grow 33-times to reach a $1.8 Tn (200 Tn JPY) valuation in the next two decades.

Yesterday, media reports have said that Goldman Sachs Group Inc will also be investing in the SoftBank’s second vision fund but the group did not get a mention in the SoftBank’s statement.

SoftBank Vision Fund In India

SoftBank Vision Fund was set up in 2017 with a total corpus of $100Bn. Most of this vision fund was raised from Saudi Arabia and Abu Dhabi. Overall, the company has invested around $10 Bn so far in Indian startups.

SoftBank has witnessed an 80% year-on-year growth in its operating income for FY 2019. The Son-led company attributed this growth to an unrealised gain of about $12.5 Bn from its investments in ride-hailing company Uber, Indian hospitality company OYO and other portfolio companies. Overall, its investments in Flipkart and OYO paid off with a gain of $2.7 Bn, split between realized and unrealised gains.

SoftBank’s other key investments in India include OlaOYOHikePaytmFirstCryGrofersDelhiveryAutomation Anywhere, and Paytm Mall. Earlier this month, SoftBank was said to be in talks to launch an initial public offering of its $100 Bn SoftBank Vision Fund.

SoftBank Vision Fund was recently reported to be looking to hire a dozen executives in its India operations team over the next few months. “while the operating team will focus on helping our portfolio companies grow globally, they will also be actively investing. The investing and operating teams will work very closely,” the managing partner of SoftBank Investment Advisers, Munish Varma had reportedly said earlier.

During his visit to India in April 2018, CEO Son had reiterated his commitment to invest further in the Indian landscape. Sharing his vision for SoftBank’s portfolio, he said, “Making local companies go global while global to go local’.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

SoftBank Announces Second Vision Fund With A Corpus Of $108 Bn-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

SoftBank Announces Second Vision Fund With A Corpus Of $108 Bn-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

SoftBank Announces Second Vision Fund With A Corpus Of $108 Bn-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

SoftBank Announces Second Vision Fund With A Corpus Of $108 Bn-Inc42 Media
SoftBank Announces Second Vision Fund With A Corpus Of $108 Bn-Inc42 Media
You’re in Good company