Here’s a look at the successful SoftBank investments in India:
Even as SoftBank’s Chinese investments sink into the red, the Japanese giant is ready to see a surge in the value of investments in India buoyed by blockbuster IPOs of start-ups in the two years. While financial services firm Paytm has already hit the market with an initial public offering (IPO), other SoftBank-backed companies are in different stages of their market debut. (Image: Reuters)
Paytm: Financial services provider Paytm recently floated the biggest initial public offering (IPO) of Rs 18,300 crore and got subscribed 1.89 times till the final day of bidding. The Paytm stock will list on the bourses on November 18. The company will utilise the proceeds from the listing to fund growth through the acquisition and retention of consumers. One of its best bets in India, SoftBank first invested in Paytm in 2017. In 2019, the platform raised $1.5 billion to $2 billion from the venture capital fund Softbank Vision Fund. Paytm raised around $32.4 million in total in four rounds of investment. (Image: Reuters)
Policybazaar: Making way for another stellar stock market debut, shares of PB Fintech, the parent firm of Policybazaar, gained over 20% on the IPO price on its debut on Monday. The stock is listed at a premium of 17.35% on the Bombay Stock Exchange. Earlier this month, the Rs 5,600-crore IPO of Policybazaar got subscribed 16.59 times by investors.
Delhivery: Logistics services provider Delhivery has filed its draft prospectus with market regulator Securities and Exchange Board of India (Sebi) to raise Rs 7,460 crore through an IPO. The Gurugram-based company plans to raise Rs 5,000 crore through issuance of fresh shares. Some of its existing investors will also dilute their holding through a Rs 2,460-crore offer for sale. Of the investors, SoftBank Vision Fund, private equity fund Carlyle and Times Internet are selling partial stakes.
Oyo: Hotel-booking startup Oyo Hotels & Homes has also filed draft papers with Sebi for an IPO to raise Rs 8,430 crore. The company plans to raise Rs 7,000 crore through fresh issue of equity shares and Rs 1,430 crore through offer for sale. SoftBank holds 46% stake in Oyo, while founder Ritesh Agarwal and his holding company RA Hospital Holdings holds 33%. Oyo was SoftBank's fourth investment in India after Snapdeal, Ola and Housing. SoftBank had invested $100 million in Oyo in August 2015.
Ola: Indian ride-hailing company Ola, founded in 2010 by Bhavish Aggarwal, plans to hit the markets with a $1 billion IPO in the next few months.
Swiggy: Although Swiggy has not formally announced its plans for an IPO, SoftBank founder Masayoshi Son expects the food delivery platform to give “good returns" when it goes public. “If they (Swiggy) go public, I believe that we will be able to see good returns from here too, that's our expectation," Son had said in August this year. Swiggy's rival Zomato saw a stellar debut on Dalal Street in July with its shares zooming about 53% against the issue price of Rs 76.