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25 major investments by SoftBank in Indian companies

October 07, 2020
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Softbank

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This article is written by Amresh Tiwari, pursuing a Diploma in M&A, Institutional Finance and Investment Laws (PE and VC transactions) from lawsikho.com.

Introduction

A Japanese multinational investor Mr. Masayoshi Son ventured to establish a financial and investment company Softbank Group Corp in Japan on 3rd September 1981 with a vision to provide funding to startups which have potential to succeed in the long term business. It has arrangements to provide funds under the Vision Funds, the world’s largest technology focused venture capital funding facility with over $100 billion in capital. Softbank Vision Fund has funded Ola, Uber, Alibaba, Snapdeal, Yahoo Japan, Hike, PayTm and many more in different parts of the world.   

Softbank Group is led by its founder Mr. Masayoshi Son and growing exponentially. The company has funded and owned businesses in varied areas such as e-commerce, internet, technology services, finance, media and marketing, broadband, fixed-line telecommunications, semiconductor design and other businesses. Softbank is recognized by Forbes Global 2000 list with 36th position in global ranking, also its 2nd largest Japanese publicly traded company.

SoftBank’s investment in India

In a time span of around 5 years under the leadership of Masayoshi Son Softbank has invested around $8 billion dollars in India since its inception from 2014. The target of Softbank by 2024 is to infuse $10 billion dollars in various sectors in Indian market and it could be witnessed that it will achieve the target earlier than the expected time frame. 

“In an earlier statement given by Masayoshi Son, he recited that SoftBank will achieve its target much ahead of the stipulated timeline with proportionally bigger volume”. 

India would be getting benefit in various sectors through more than 20 joint ventures due to the efforts facilitated by Softbank by way of its various investments through the SoftBank Vision Fund (SVF) as stated by its director and vice president Mr. Rajeev Mishra in an exclusive interview to Economic Times. 

List of 25 major investments made by SoftBank in Indian companies

SoftBank entered the Indian market in 2011 by investing $ 200 million in InMobi, a global mobile advertising platform and it hasn’t looked back ever since. After that it invested in many firms, some of which are as below:

Conclusion 

Softbank has been helping a number of firms to tap the international markets. Among its India portfolio companies, Oyo has expanded to China, Europe and US. Paytm has entered Japan and Canada while FirstCry, the baby products retailer, has entered the UAE.

SoftBank has already invested $10 billion across Indian startups such as Paytm, Oyo, Delhivery, FirstCry, among others, out of which $8 billion came from the Vision Fund. In a statement to ET in February 2019 the fund, which is widely seen as reordering tech investing, will start to cut smaller sized cheques in the range of $100 million in companies which are valued at around $500 million. ET reported that eyewear retailer Lens kart is in talks with SVF to secure $350 million in fresh funding, which is likely to value the Delhi-based firm at $1.3 billion.


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