SoftBank India’s investment portfolio, spanning vision fund I and II, has seen a remarkable 9% increase in fair value as of December 2023. This surge in valuation was revealed in a presentation during the Japanese investor’s earnings release, highlighting the company’s continued confidence in the Indian market.
Among SoftBank’s top 15 most valued companies is ecommerce giant Flipkart, underscoring the breadth and depth of its investment portfolio in India. The positive momentum extends further as SoftBank reports a net profit of over $6 billion for the three months ending December, marking its first profitable quarter in five quarters.
A significant contributor to this profitability is the stock rally in listed firms from vision fund I, which has enabled SoftBank to capitalize on its investments. Notably, the investor has made successful exits from Zomato, Policybazaar, and PhonePe, further bolstering its financial position.
Since November 2018, SoftBank’s two vision funds have injected $11 billion into Indian companies, with exits totaling $6.2-$6.5 billion as of early January this year. This robust investment activity reflects SoftBank’s continued commitment to supporting the growth and development of the Indian startup ecosystem.
The latest earnings report also highlights the positive performance of SoftBank’s vision funds, with a combined gain of $3.6 billion in the October-December period. This marks the third consecutive quarter of profitability, signaling a promising trajectory for the company’s investment strategy.
Looking ahead, SoftBank remains bullish on the Indian market, citing it as one of its best-performing markets. With a healthy pipeline of portfolio companies gearing up for IPOs in the coming years, including FirstCry and Ola Electric, the investor is poised to capitalize on the burgeoning opportunities in the Indian startup landscape.
Companies backed by SoftBank, such as OfBusiness, Lenskart, and Swiggy, are among those preparing to go public over the next 12-18 months, further underscoring the investor’s confidence in the long-term growth potential of its portfolio.
In a strategic move, SoftBank is gearing up to reinvest in Indian startups after a dry spell of nearly 18 months, signaling its continued commitment to fostering innovation and driving economic growth in India. With its proven track record and forward-looking approach, SoftBank is poised to play a pivotal role in shaping the future of the Indian startup ecosystem.
