Japanese venture capital company Softbank sold its 3.8% stake in Delhivery for Rs 954 crore on March 2. The Japanese fund had invested approximately Rs 3,100 crore in the logistics company as reported by Business Standard. This sale reduces Softbank’s holding in Delhivery to 14%. The shares of the last-mile delivery company were sold at Rs 340 a piece in a block deal.
The fund has been in the headlines for its poor performance in recent quarters. The fund has been offloading its stake in numerous Indian companies. A report by Moneycontrol stated that Softbank reduced its stake in Indian enterprises by 84% in 2022 alone. The selling spree marks turbulent times for the venture capital fund.
The company which has backed nearly 20 out of 100 unicorns has turned into a bulk seller. Softbank sold a 5.1% stake in the policy bazaar for Rs 1,043 crore in December last year. The fund sold 4.5% of Paytm shares for Rs 1,631 crore in November last year as reported by Economic Times. The fund also exited its stake in Firstcry.com and instant delivery startup, Blinkit in 2022. The company drastically reduced its funding in 2022 to $500 million (Rs 4,000) crore against a $3,200 million (Rs 26,000 crore) investment in 2021.
Once known as the ‘Nasdaq Whale’ for its massive positions in the American markets during the covid-19 pandemic is witnessing tough times. Softbank’s Vision Fund reported a massive loss of $5.52 billion in the third quarter of FY23. The fund has reported losses for four consecutive quarters as reported by Reuters.
Softbank has turned on a cautionary mode for investing. The company has significantly reduced the amount of investment and the number of investments in new ventures. The fund is also offloading its stake in companies as reported by Reuters.
The fund has been an aggressive investor in tech startups as well as invested in the stock markets around the world. The collapse in the Chinese tech stocks, the consequent interest rate hikes by the Fed, the Russia-Ukraine war and the impact of the Covid-19 pandemic have impacted the profitability of the highly successful investment fund.
Softbank is a Japanese multinational conglomerate which has several funds investing in enterprises around the world. The Tokyo-based company dominantly invests in financial, energy, and technology companies. The company is known for its aggressive investment strategies including outright buying companies.
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