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SoftBank Vision Fund, backer of Paytm, OYO, Ola, posts $32-bn annual loss

SoftBank Vision Fund, backer of Paytm, OYO, Ola, posts $32-bn annual loss

This development comes amid a challenging scenario for tech companies globally, which are battling funding crunch, lower valuations, delayed IPOs, among other thing headwinds

Bhavya Kaushal
Bhavya Kaushal
  • Updated May 11, 2023 6:54 PM IST
SoftBank Vision Fund, backer of Paytm, OYO, Ola, posts $32-bn annual loss In a separate development, the investment behemoth which is known for backing Indian start-ups such as OYO, Ola, Zomato and others, sold its 2.07 per cent stake in fintech giant Paytm

Tokyo-based investment firm SoftBank Vision Fund recorded a loss of 4.3 trillion Yen or $32 billion for the fiscal year, which ended on March 31, 2023. SoftBank reported a net loss of 970 billion Yen or $7.18 billion for FY23 as compared to the 1.7 trillion yen loss it recorded in the same period a year ago. 

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This development has come amid several challenges within the tech industry. Funding crunch apart, top tech players are witnessing their valuations getting marked down and plans for public listing getting delayed. 

In a separate development, the investment behemoth which is known for backing Indian start-ups such as OYO, Ola, Zomato and others, sold its 2.07 per cent stake in fintech giant Paytm in a series of open market transactions since February 2023 to comply with market regulator Sebi's takeover regulations. 

SoftBank said it sold an aggregate of 13,103,148 equity shares of Paytm in a series of disposals undertaken between February 10 to May 8. The disclosure obligation under Regulation 29(2) of the SEBI Takeover Regulations was triggered pursuant to the disposal of 433,501 equity shares of the Paytm on May 8, which coupled with the previous disposals, breached the 2 per cent threshold, SoftBank said.

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Paytm apart, SoftBank has also been making some high profile exits from its portfolio companies to raise cash. This includes Germany-based T-Mobile and Jack Ma-led Alibaba. In August 2022, the company announced that it has sold off its remaining stake in ride hailing business, Uber. 

Yoshimitsu Goto, Chief Financial Officer of SoftBank said its portfolio companies are well-capitalised. He also hinted at several portfolio companies going for public listing without naming them. 

In India, OYO is preparing for an initial public offering. SoftBank chief Masayoshi Son was also spotted at the company’s founder Ritesh Agarwal’s wedding in Delhi in March this year. 

Son founded SoftBank in 1981 as a software aggregating company. In 2017, Son launched the technology-focused SoftBank Vision Fund worth $100 billion. The ambitious project of Son was funded by Apple, Qualcomm, Foxconn, Abu Dhabi Mubadala Investment Fund, among others. The prolific investor launched a Vision Fund II in 2019 and also revealed that it has plans of launching a Vision Fund III. 

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However, after exhausting all money from Vision Fund II, the plans for the third fund remain uncertain.

Also Read: ‘No impact on operational performance’: Mankind Pharma responds to I-T searches

Published on: May 11, 2023 6:54 PM IST
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