Japanese tech conglomerate SoftBank went back into the red after it recorded ¥783.4 billion ($5.93 billion) loss in the December quarter, while its sprawling investment vehicle Vision Fund registered a loss of ¥730.36 billion ($5.52 billion).
Its investments were impacted downward revisions of portfolio company performance amid a weak macro outlook, especially for tech companies. At a time when the sector is grappling with a funding crunch, about 94 percent of the Japanese investor's portfolio companies have a cash runway of 12 months.
Over the last 12 months, its portfolio companies have attracted additional funding of more than $16 billion of capital raised across 87 funding rounds. More importantly, SoftBank is looking at a string of exits via public listings of its late-stage portfolio companies which now constitute 70 percent of its investments.
However, the Japanese tech investor's portfolio of publicly listed companies has suffered in the last one year amid a broader tech stock rout. It is sitting on losses of $500 million for its $1 billion investment in Paytm, $3.1 billion loss for its $3.2 billion investment in WeWork, $9 billion loss for its $12 billion investment in Didi, among others.
Some of its profitable investments as of the December quarter are Coupang where it is sitting on gains of $4.2 billion, DoorDash where its investment of $200 million has yielded gains of $800 million and Delhivery where it is sitting on gains of $200 million for an investment of $300 million.
In the previous quarter, SoftBank had seen profit for the first time in three quarters as the Japanese investment conglomerate sold a significant stake in its crown jewel Alibaba Group Holding to garner money at a time when a majority of its investments have tanked amid a global tech rout.
At the time, it had reported a net profit of ¥3.08 trillion ($21.77 billion) in the three months to September 30, thanks to a ¥37.93-billion gain related to the early settlement of prepaid forward contracts using Alibaba’s shares, the company’s regulatory filings showed.
In the September quarter, SoftBank’s Vision Fund investment unit had reported a loss of as much as ¥1.38 trillion on its investments hitting the company's profits for the quarter ended September.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
