Softbank May Invest $50-$100 Mn in 4-5 Indian Startups - Report

Japanese multinational investment holding company Softbank is in talks with four to five Indian Startups, to invest about $4-$5 million in each, with valuations of around $400 to $500 million, reported Business Standard.

With a focus on areas of B2C space, enterprise, and media, the investment bank will invest and support the selected startups in their next stage of growth.

According to the report, Softbank could end financial year 2023 flat, with total Indian investments below $500 million. At present, its total investment in Indian companies is pegged at $15 billion. It has also undertaken exits valued at $6-7 billion.

Last year, Softbank reduced its investments in India by more than 84% versus 2021 as it turned extremely selective in capital deployment amid macroeconomic headwinds.

In addition, SoftBank is also looking into opportunities in companies where existing investors are willing to exit through a secondary sale as the companies have postponed their IPO plans. If these deals are finalized, the Japanese group is looking at investing over $100 million in each of these deals.

In India, SoftBank has invested close to $15 billion through its Vision Fund investment units over the years, sources said. In 2021, SoftBank participated in at least three rounds of more than $500 million.

SoftBank Group has recently announced that losses from the SoftBank Vision Fund had widened 70% to a record $32 billion from a year ago.

Very recently, SoftBank Group strongly criticised S&P Global after the later's issued ratings cut Softbank's long-term credit rating a notch further into junk territory, citing the Japanese tech conglomerate’s exposure to private market valuations and other external risk factors.

Last month, it was reported that SoftBank Group would sell its early-stage venture capital arm SoftBank Ventures Asia to Singapore-based The Edgeof, a newly formed investment firm led by Masayoshi Son's youngest brother, Taizo Son, as SoftBank Group grappled with steep losses in a myriad of investments made around the world.
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