SoftBank Can Invest $5 Billion-$10 Billion in Indian Startups in 2022
"If we find the right companies, we could invest $5 billion to $10 billion in 2022," SoftBank Investment Advisers CEO said.
(Bloomberg) -- SoftBank Group Corp. can invest $5 billion to $10 billion in India next year if it finds valuations attractive, said Rajeev Misra, chief executive officer of SoftBank Investment Advisers.
“If we find the right companies, we could invest $5 billion to $10 billion in 2022,” Misra told Haslinda Amin at the Bloomberg India Economic Forum on Thursday. “If we find the right opportunities at the right valuation.”
So far, investments in India haven’t disappointed the Japanese giant with its portfolio of startups in the country sitting atop sizable gains in valuations. SoftBank is planning to raise the stakes in India -- having invested $3 billion in 2021 -- just as global firms grow more wary of bets in China with tighter regulations across a number of industries hurting deals there.
India has been a bright spot for SoftBank, whose Vision Fund reported a record loss of 825.1 billion yen ($7.2 billion) for the quarter ended in September, on the decline in value of public holdings such as the Korean e-commerce giant Coupang Inc. and the Chinese ride-hailing giant Didi Global Inc. The Japanese company invested early in the Indian market, taking a stake in ride-hailing giant Ola and e-commerce leader Flipkart, before its acquisition by Walmart Inc.
SoftBank also invested in digital payments pioneer Paytm, which is poised to raise $2.5 billion in its initial public offering. Oyo Hotels & Homes, also backed by SoftBank, filed preliminary documents for an 84.3 billion rupee ($1.1 billion) initial public offering in October.
India’s tech ecosystem is taking off and SoftBank’s patience will be “rewarded,” Misra said. “It is India’s time.”
Here are some of Misra’s other comments at the event:
- The quantum of capital we are able to invest today is not as high in India because the startup founders are not raising as much money
- Fintech is the biggest opportunity in India partly as financial inclusion and credit availability is a must for India to become a $5 trillion economy. Education is another sector where SoftBank is looking to invest in the nation
- The company has an investment team of over a dozen in India, perhaps the biggest team for foreign investment in the country
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