Japanese telecom and media giant SoftBank’s investments in India will surpass $10 billion in 5 to10 years, chairman Masayoshi Son said on Friday. At the Hindustan Times Leadership Summit in New Delhi, Son referred to an earlier $10 billion commitment and said, “I am going to surpass my commitment.” Masayoshi said that the company had already invested $2 billion in India. Son said that SoftBank still needs to raise $30 billion for a $100 billion technology investment fund.
SoftBank Corp recently booked an investment loss of $ 560 million on its investments in the country, including ride-hailing service Ola and e-commerce website Snapdeal. SoftBank in its earning statement for the six months which ended in September reportedly wrote off 58.14 billion yen in the share value of India’s investments. This included Jasper Infotech which owns Snapdeal and ANI technologies which own Ola.
SoftBank in the earnings statement said, “Gain or loss arising from financial instruments at FVTPL (fair value through profit or loss) comprises mainly of changes in fair value of preferred stock investment, including embedded derivatives such as ANI Technologies Pvt Ltd and Jasper Infotech Private Limited in India, designated as financial assets at FVTPL.”
SoftBank earlier led a $627 million in Snapdeal and $210 million investment in Ola in October, two years ago. It then followed up on the investment made in these firms. Meanwhile, both Ola and Snapdeal have been trying to raise new funds in order to sustain operations when the competition from rivals have been growing.
Ola has totally raised around $1.2 billion from investors like Tiger Global Management, Matrix Partners, SoftBank Group and Didi Chuxing. Snapdeal in the last year raised $500 million from the Alibaba Group, Foxconn Technology Group and existing investor SoftBank Group. In October, SoftBank said that it will form a new fund with Saudi Arabia’s public investment firm with an aim to invest as much as $100 billion in the global technology industry.
(with PTI inputs)