Last year, the company had invested around $3.2-3.5 billion in the Indian startup ecosystem - almost 10 per cent of the total investment the sector received. For CY22, the investments may not even touch $1 billion.
"So far, SoftBank has invested around $450-500 million. It is looking at a few more that may take its overall investment in India to $600-650 million," said a person privy to the discussions.
Even as investments in India have declined, SoftBank is also meeting its portfolio firms in India.
The message is clear.
"Have enough cash to sustain for two years. It believes this funding winter will be a fairly long-drawn-out one and recovery will be sluggish," said another source. People familiar with the firm's plans said while the follow-on will be scrutinised and will be supported where required, new investment will be hard to come by. "This year it is going to be very selective. The thought process is that the markets will hit the bottom by early 2023," said another source. The Japanese firm does not see the initial public offering (IPO) market reviving any time soon.
In a marked departure, FirstCry - one of its early India investments - is ready to make its public debut this year.
SoftBank is reaching out to all its portfolio firms as the Japanese fund looks at trimming costs. Sources in the industry said its portfolio firms have been told they should look at conserving cash for at least two years since the fund believes this will be a fairly protracted recovery. Even in terms of IPO, they say it will take at least one to two years for markets to bounce back. Vision Fund (VF)-1 still has $10-12 billion for follow-on investments, but these will be done with greater scrutiny.
Diese Geschichte stammt aus der August 11, 2022-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 11, 2022-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
India-Pak WC clash could fetch $4,800 a second in ad spend
Global firms are splurging on advertising for the upcoming cricket match between India and Pakistan to be held in the US, tapping into the spending power of the South Asian diaspora.
Bureaucracy braces for change with hope and apprehension
Officials fear re-emergence of coalition politics may lead to delayed or disjointed decisions
'Tax origin not suitable to measure budgetary devolution to states'
Using the \"origin of tax collection\" as an indicator to decide the budgetary devolutions can further accentuate the already high levels of fiscal inequalities among the states, a recent study published in The India Forum journal says.
DISCREPANCIES IN TECHNICAL BIDS - Govt likely to give two weeks to ACC PLI applicants
The central government is planning to give a two-week window to the applicants of the 10 GWh tranche of the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme to submit all the necessary documents, Business Standard has learnt.
Moody's flags concerns over coalition challenge
Says reduced political stability might erode investor confidence
ET Money suspends transactions in Quant MF schemes
Online mutual fund (MF) distribution platform ET Money on Friday said it had suspended fresh lumpsum investments and SIP registration in Quant MF schemes owing to pending 'business and operational integration' with the fund house.
Mirae Asset mulls $150 mn infusion into Sharekhan
South Korea's financial services major Mirae Asset Capital Markets plans to infuse over $150 million into retail broking arm Sharekhan for expansion into wealth and portfolio management business, said sources.
MARKET CRASH AFTER POLL RESULTS - Plea urges SC to direct govt, Sebi to investigate
A lawyer has filed an application before the Supreme Court \"to direct\" the government and the market regulator to give a report on the share market crash and loss to investors after election results Tuesday.
Markets make sharp recovery but a third of stocks still in red
PSES, Adani, infra stocks among laggards
Sebi plans to open CDS market for MFs
The Securities and Exchange Board of India (Sebi) is planning steps that will increase participation and allow greater flexibility for mutual funds (MFs) in the credit default swap (CDS) market.
