Swiggy’s IPO hands SoftBank a Rs 5,500 crore gain in Q3, Ola Electric weighs on performance

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Swiggy’s market market debut provided a much-needed boost to SoftBank’s Vision Fund, adding a cumulative gain of $643 million (Rs 5,465 crore) for the Japanese investment giant in the December quarter even as other portfolio firms — Ola and Delhivery — dragged down overall performance.

On February 12, SoftBank’s Vision Fund investments posted a loss of $2.29 billion in the third quarter of FY25, slipping into negative territory after two consecutive quarters of gains.

The divergence in performance between its two investment vehicles continues. The first fund (SVF1) recorded a $4.8 billion investment gain till December, while SVF2, which has higher exposure to India startup ecosystem, remained in the negative territory, reporting a $2.9 billion loss.

Ola Electric impact 

SoftBank’s cumulative gains on Ola Electric declined to $254 million (Rs 2,159 crore) from $400 million in the previous quarter, reflecting pressure on the stock price.

SVF2 saw a 3.7 percent decline in its fair value quarter-on-quarter (QoQ), driven primarily by falling stock prices of key portfolio companies.

"The fair value of investments held at the third quarter-end decreased by 3.7% from the previous quarter-end. This was down 4.2% QoQ for public portfolio companies, mainly due to decreases in the share prices of investments such as Ola Electric Mobility and AutoStore, despite an increase in Swiggy’s share price following its listing in November 2024," the company said on February 12.

Ola Electric’s stock, which debuted at Rs 76, was one of SoftBank’s standout investments last quarter. However, the stock price has since remained volatile. It hit a record low of Rs 64.68 on January 28.

Delhivery falls, Firstcry flat  

Brainbees , the parent company of FirstCry, maintained its flat cumulative gains at $635 million (Rs 5,397.5 crore), while logistics firm Delhivery slipped from $306 million in the September quarter to $232 million (Rs 1,972 crore) in December. Both the investments come from Vision Fund 1.

Despite these challenges, Swiggy’s strong stock performance following its listing in November helped offset some of the losses in SoftBank’s portfolio.

The Japanese investment giant continues to hold its 170 million shares in Swiggy, having chosen not to dilute its stake during the IPO’s offer-for-sale (OFS) period.

However, despite a strong IPO, Swiggy’s stock has remained volatile is trading below its listing price.

On February 10, it touched a new 52-week low of Rs 359 after weaker-than-expected Q3 earnings, compared to its previous high of Rs 617.30 per share.

Also read: SoftBank reports $2.4 billion loss in Q3, Vision funds slip into red

Continued volatility 

The December quarter highlights the continued volatility within SoftBank’s Vision Fund, particularly in its second fund, which has struggled to match the success of SVF1.

Since its inception in 2019, SVF2 has recorded a cumulative gross loss of $22.2 billion on $55.2 billion investments. SVF1, launched in 2017, has delivered a gross gain of $21.6 billion on $89.5 billion in investments.

SoftBank’s overall financials also reflected a tough quarter. The company reported a loss of $2.4 billion. The investment major offloaded $2.98 billion worth of assets, including exits from DoorDash and SenseTime, but portfolio fluctuations continued to impact overall valuations.