Softbank is growing by the moment in India. The venture capital fund has no brakes and is just diving down every successful business that comes in its way. It is splashing the cash at almost everything and the cash is not just a few bundles but piles and piles. The growth is extravagant and that word does not catch the exact rise of the company. The investments are superfast, super-big and just superb. The fact that they are not stopping and are going to keep exploiting the startup country India is also positively frightening.
The Masayoshi Son owned firm came in India in 2011 and invested around $200 million in InMobi, a mobile advertising-based company. After that, it was silent for three years and came back in 2014. Son promised that it will invest over $10 billion in India and the time period he spoke off was a decade. However, Softbank has managed to cross that in just over five years. With $400-450 million investments in Firstcry and a logistics company Delhivery, it will cross the $10 billion mark.
This is huge for Softbank as it has aggressively invested in many companies in India. Softbank has invested in companies in every sector. It has invested in online companies and technology-based companies. These companies are not necessarily startups but well-established unicorns. The fact that it has major stakes in two of the most lethal cab aggregators in India is amusing and praiseworthy. It has invested in Uber India and also in Ola. It was on the verge of taking over Ola when Bhavish Agarwal found ways to sort his way out.
It also has investments in Flipkart and Snapdeal with these companies being one of its first bets in the country. It has invested in Paytm Mall as well.
The VC’s total funds invested in India are more than the combined assets of the Indian Venture Capital firms. To be more specific, Softbank’s total funding is more than India’s five major VC’s combined assets which stand at $8 billion against Softbank’s more than $10 billion in funds.
Softbank’s money comes from the Softbank Vision Fund of $100 billion which was announced in 2016. That year was very crucial as Rajeev Misra, a Deutsche Bank executive took over from Nikesh Arora and Softbank with that $100 billion started to make bolder and bolder bets.
This has led to a successful three years for Misra and Softbank as they have crossed almost $10 billion and it will continue. The trend Softbank has adopted of offering strong liquidity to existing shareholders of a company will surely be viral and be passed along to other companies. It will be interesting to see how many of them are able to adopt it and how many decide against it.