SoftBank’s India investments generate over $5.5 billion in exits since 2018

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Since initiating operations in Mumbai in November 2018, Japanese conglomerate SoftBank has garnered exits worth more than $5.5 billion from its India portfolio, according to Sumer Juneja, the firm’s Managing Partner and Head for Europe, the Middle East, and Africa.

Recent Exit Triumphs and Tradable Assets

Juneja revealed in an interview that the late-stage investor has realized exit gains exceeding $1.5 billion in the past 12 to 18 months. Additionally, SoftBank holds around $1.5 billion in tradable equities.

Anticipated Annual Exits and Notable Partial Exits

SoftBank envisions achieving one to two annual exits in the Indian market. The company has recently executed partial exits from unicorns like Lenskart and FirstCry. It has also harvested profits from publicly listed startups such as Paytm, Zomato, Delhivery, and Policybazaar. Notably, these four startups contributed $400 million in gains to SoftBank Vision Fund 1 in the first quarter of FY24.

Key Previous Exit: Flipkart

Among SoftBank’s significant exits, the most notable occurred in 2018 when it sold its 20% stake in Flipkart to Walmart for approximately $4 billion. The company re-entered Flipkart’s circle in 2021 through a $3.6 billion funding round.

Investment Strategy and Valuation Goals

Cumulatively, SoftBank’s investments in India since 2011 amount to roughly $15 billion, with nearly $11 billion poured in through its Vision Funds since 2017. Juneja explained that SoftBank’s investment approach in India centers around investing in companies valued at $1 billion to $2 billion and exiting when valuations reach $5 billion to $6 billion.

Upcoming Exits and Challenges

SoftBank’s portfolio companies like FirstCry, Lenskart, OfBusiness, Swiggy, Icertis, and Ola Electric are poised to go public, leading to further exits. However, the precise timing of these public offerings remains intricate due to market volatility and the upcoming 2024 general elections.

Shift in Strategy

After adopting a “defensive mode” in May 2022 due to market uncertainties, SoftBank transitioned back to an offensive stance in July 2023. The company aims to spearhead the AI revolution, focusing on investments in high-tech and AI-driven enterprises.

Selective AI-Focused Criteria

Juneja emphasized that SoftBank meticulously assesses potential investments, ensuring they possess the necessary technology and product teams to build AI-first businesses. This approach underscores the rising significance of AI in the firm’s investment strategy.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Sarthak Luthra
Sarthak Luthra
Hey, there! I am the tech guy. I get things running around here and I post sometimes. ~ naam toh suna hi hoga, ab kaam bhi dekhlo :-)

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SoftBank’s India investments generate over $5.5 billion in exits since 2018

Since initiating operations in Mumbai in November 2018, Japanese conglomerate SoftBank has garnered exits worth more than $5.5 billion from its India portfolio, according to Sumer Juneja, the firm’s Managing Partner and Head for Europe, the Middle East, and Africa.

Recent Exit Triumphs and Tradable Assets

Juneja revealed in an interview that the late-stage investor has realized exit gains exceeding $1.5 billion in the past 12 to 18 months. Additionally, SoftBank holds around $1.5 billion in tradable equities.

Anticipated Annual Exits and Notable Partial Exits

SoftBank envisions achieving one to two annual exits in the Indian market. The company has recently executed partial exits from unicorns like Lenskart and FirstCry. It has also harvested profits from publicly listed startups such as Paytm, Zomato, Delhivery, and Policybazaar. Notably, these four startups contributed $400 million in gains to SoftBank Vision Fund 1 in the first quarter of FY24.

Key Previous Exit: Flipkart

Among SoftBank’s significant exits, the most notable occurred in 2018 when it sold its 20% stake in Flipkart to Walmart for approximately $4 billion. The company re-entered Flipkart’s circle in 2021 through a $3.6 billion funding round.

Investment Strategy and Valuation Goals

Cumulatively, SoftBank’s investments in India since 2011 amount to roughly $15 billion, with nearly $11 billion poured in through its Vision Funds since 2017. Juneja explained that SoftBank’s investment approach in India centers around investing in companies valued at $1 billion to $2 billion and exiting when valuations reach $5 billion to $6 billion.

Upcoming Exits and Challenges

SoftBank’s portfolio companies like FirstCry, Lenskart, OfBusiness, Swiggy, Icertis, and Ola Electric are poised to go public, leading to further exits. However, the precise timing of these public offerings remains intricate due to market volatility and the upcoming 2024 general elections.

Shift in Strategy

After adopting a “defensive mode” in May 2022 due to market uncertainties, SoftBank transitioned back to an offensive stance in July 2023. The company aims to spearhead the AI revolution, focusing on investments in high-tech and AI-driven enterprises.

Selective AI-Focused Criteria

Juneja emphasized that SoftBank meticulously assesses potential investments, ensuring they possess the necessary technology and product teams to build AI-first businesses. This approach underscores the rising significance of AI in the firm’s investment strategy.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Sarthak Luthra
Sarthak Luthra
Hey, there! I am the tech guy. I get things running around here and I post sometimes. ~ naam toh suna hi hoga, ab kaam bhi dekhlo :-)

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