SoftBank Sitting On Gross Gains Worth $285 Mn From Delhivery Investment

Japanese tech investor SoftBank has said that it was sitting on a gross gain of $285 Mn (INR 2,393 Cr) from its investment (via Vision Fund I) in listed logistics unicorn Delhivery at the end of June 2024.

As per BSE data, SVF Doorbell (Cayman) Ltd held 10.15% stake in Delhivery as of June 30, 2024. 

SoftBank made the disclosures in its quarterly financial statement for the quarter ended June 2024 (Q1 FY24). According to an investor presentation, SoftBank Vision Fund 1 (SVF-1) has invested $392 Mn in the logistics startup till date and was sitting on gross returns to the tune of $682 Mn. 

This translates into a gross multiple of invested capital (MOIC) of 71% for the tech investment firm. 

For the uninitiated, SoftBank entered the cap table of Delhivery quite late and first invested $315 Mn in the logistics startup in March 2019 in lieu of 12.35 Lakh shares. It was this very investment that pushed Delhivery into the unicorn club. 

Since then, SoftBank has made heavy windfall from the investment. At the time of Delhivery’s listing, the investor bagged returns in excess of 148.2% or INR 365 Cr. Afterwards, it also sold 2.51% stake in the logistics major for INR 747 Cr. 

Meanwhile, as per the Q1 FY24 presentation, the Japanese major also said that SVF-1 reported a gross loss of $544 Mn against the $1.6 Bn investment made in troubled fintech major Paytm. 

It is pertinent to note that SoftBank exited the fintech major in the just concluded quarter, having pumped in capital across multiple tranches in Paytm parent One97 Communications since 2017. Last month, reports surfaced that the investment firm dumped its entire shareholding in Paytm at a loss of $150 Mn. 

But, the biggest bagger in SoftBank’s kitty was PB Fintech, insurtech major PolicyBazaar’s parent. 

The presentation noted that SVF-1 exited the homegrown startup with a 3X MOIC, having accumulated returns worth $592 Mn against an investment of $199 Mn in PB Fintech. It exited Policybazaar in January this year. 

Additionally, SoftBank also clocked gains to the tune of $65 Mn from its full exit from Zomato. It had received a small shareholding in the foodtech major after its portfolio startup Blinkit was acquired by Zomato in 2022.

Additionally, the Japanese investor is also expected to cash in on the initial public offerings (IPOs) of its three portfolio Indian companies namely Ola Electric, FirstCry and Unicommerce. While it has cumulatively invested around $843 Mn in the three homegrown new-age tech companies, it plans to sell up to stakes worth $153 Mn in the three companies via the markets debut. 

To date, SoftBank has reportedly pumped in $10.6 Bn in multiple Indian startups over the past decade. It has reportedly also clocked exits of about $6 Bn to $6.8 Bn from the homegrown startup ecosystem. 

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