SoftBank gains $7.4B from India investments, retains $13.7B portfolio
What's the story
Japanese investment giant, SoftBank, has realized around $7.4 billion from its investments in India so far. The company's holdings in the country are currently valued at approximately $13.7 billion as of December 31, according to a recent disclosure by the technology and investing conglomerate. The value of these holdings has been boosted by recent initial public offerings (IPOs) and strong post-listing performances of companies like Meesho and Lenskart.
Investment growth
Significant returns from Meesho and Lenskart investments
SoftBank's investment in Meesho, which was made at a total cost of about $300 million, is now valued at around $800 million on its books. This translates into a gross multiple of 2.8x. The overall IPO environment and performance of companies like Meesho have significantly contributed to the increase in value. Lenskart has delivered even higher returns with SoftBank's $300 million investment now valued at about $1.3 billion, translating into a gross multiple of 4.8x.
Diverse investments
Remaining exposure in private companies across various sectors
A large part of SoftBank's remaining exposure in India is still in private companies across a range of sectors. These include software, e-commerce, fintech, mobility, and edtech. Some of the companies in which SoftBank has invested include Oyo, OfBusiness, InMobi, Unacademy, Whatfix and Zeta. The company has also fully exited Flipkart, Paytm and Policybazaar which contributed to the cumulative proceeds disclosed by the firm.
Fund performance
SoftBank's record profits driven by investment valuation gains
In the December quarter, SoftBank posted a net profit of $1.6 billion at the group level. This is its fourth consecutive profitable quarter, largely driven by investment valuation gains from bets such as OpenAI. The company's Vision Fund segment also posted a gain of $2.4 billion, reflecting increases in portfolio valuations.