SoftBank Gains Over $100 Mn From Paytm, Delhivery & PB Fintech In Jan-Mar Quarter

Nearly 50% Indian Startups In SoftBank’s Portfolio Break Even Or Close To It: Report

SUMMARY

The rise in Paytm’s valuation over the last few months on the back of its improving financial performance helped the fund gain $111 Mn in the March quarter

Policybazaar parent PB Fintech contributed $54 Mn to SVF1’s gains, while Delhivery added $7 Mn during the quarter

Zomato individually added $28 Mn to the fund's loss in the January-March quarter

The four listed Indian startups in SoftBank’s portfolio – Zomato, Paytm, Delhivery, and PB Fintech – together added over $100 Mn to SoftBank Vision Fund 1’s (SVF1) books in the quarter ending March 2023.

The rise in Paytm’s valuation over the last few months on the back of its improving financial performance helped the fund gain $111 Mn in the January-March quarter.

Meanwhile, Policybazaar parent PB Fintech contributed $54 Mn to SVF1 in the January-March quarter. The investment giant’s total gains from the insurtech major stood at $356 Mn as on March 31, 2023.

On the other hand, SVF1’s gains from logistics unicorn Delhivery stood at $194 Mn as on March 31, 2023, with $7 Mn gained during the January-March quarter.

However, Zomato individually added $28 Mn to the fund’s loss in the January-March quarter. As of March 31, 2023, Zomato’s total contribution to the loss of SVF1 stood at $131 Mn.

Despite the positive contribution in the March quarter of 2023, Paytm has overall contributed a $526 Mn loss to SVF1 till March 31, 2023.

Despite gains from its major portfolio companies, SoftBank’s Vision Fund segment saw its losses balloon to 4.3 Tn Yen ($32 Bn), up over 68.7% year-on-year (YoY) in the fiscal year ending March 31, 2023.

The Japanese investment giant’s total loss on investments at Vision Funds and LatAm Funds grew to 5.3 Tn Yen ($39 Bn). SoftBank Vision Fund 1 (SVF1) contributed 2.3 Tn Yen ($17.2 Bn) in the loss, while SVF2 contributed 2.4 Tn Yen ($17.9 Bn) during the year.

Despite the growing losses, SoftBank said Asian markets continued to demonstrate resilience and growth prospects in the fiscal year of 2023.

The current fair value of SVF1’s investments in the four listed Indian startups stood at $1.4 Bn as of March 31, 2023.

While its listed Indian portfolio companies have started showing better returns, SoftBank continues to sell its stake in these companies. continue. In a statement on Thursday (May 11), the VC major said it sold a 2.07% stake in Paytm and disposed of an aggregate of 1.3 Cr shares.

After the completion of the sale, SoftBank holds an 11.17% stake in Paytm or around 7.1 Cr shares. Recently, it also offloaded shares in Policybazaar and Delhivery.

Meanwhile, on the private investment front, the current fair value of SoftBank’s portfolio stood at $66.1 Bn as of March 31, 2023, with Indian portfolio startups having a total current fair value of $5.8 Bn.

Ola, Flipkart, and Meesho are the unlisted Indian startups in SoftBank’s portfolio.

Overall, SoftBank’s total net loss narrowed to 970.14 Bn yen in the reported fiscal year from 1.7 Tn yen last year.