SoftBank Vision Fund, an investment company with headquarters in Tokyo, reported a loss of 4.3 trillion Yen ($32 billion) for the fiscal year that ended on March 31, 2023. For FY23, SoftBank reported a net loss of 970 billion Yen, or $7.18 billion, as opposed to the loss of 1.7 trillion Yen it experienced during the same time the previous year.
Numerous difficulties in the tech sector have led to this development. Aside from the funding shortage, leading technology companies are seeing a decline in their valuations and a postponement of ambitions for a public listing.
Everything You Need to Know about SoftBank Vision Fund!
In a separate development, the investment behemoth, which is known for supporting Indian start-ups like OYO, Ola, Zomato, and others, sold its 2.07% stake in fintech giant Paytm in a series of open market transactions since February 2023 to comply with takeover rules set by market regulator Sebi.
In a series of disposals made between February 10 and May 8, SoftBank claimed to have sold a total of 13,103,148 equity shares in Paytm. In response to the sale of 433,501 equity shares of Paytm on May 8, which when combined with earlier sales, exceeded the 2 percent threshold, the disclosure requirement under Regulation 29(2) of the SEBI Takeover Regulations was triggered, according to SoftBank.
Aside from Paytm, SoftBank has been raising money by making some high-profile exits from its portfolio firms. T-Mobile, established in Germany, and Jack Ma’s Alibaba are examples of this. The corporation said in August 2022 that it has sold off its remaining ownership in Uber, a ride-hailing company. The portfolio companies of SoftBank, according to Yoshimitsu Goto, Chief Financial Officer, have adequate capital. Without identifying them, he also made hints that several portfolio businesses will go public.
OYO is getting ready for an initial public offering in India. Masayoshi Son, CEO of SoftBank, was also sighted at Ritesh Agarwal’s wedding in Delhi in March of this year. Son started SoftBank as a software aggregation business in 1981. Son introduced the $100 billion technology-focused SoftBank Vision Fund in 2017.
Apple, Qualcomm, Foxconn, and Abu Dhabi Mubadala Investment Fund, among others, provided funding for Son’s ambitious initiative. The renowned investor announced intentions to launch Vision Fund III as well as the launch of Vision Fund II in 2019. Plans for the third fund are still unknown, though, because Vision Fund II has run out of funds.
