Softbank’s global travails make fresh India investments uncertain

  • According to several people directly aware of ongoing discussions, SoftBank has been mulling two deals for over six months now Softbank’s investment track record shows that it has not made a single fresh investment in India so far this year
  • A number of large ticket investments by Softbank in Indian startups run the risk of coming undone at the last moment due to the Japanese investors’ recent setbacks with marquee portfolio investments such as WeWork and Uber which have failed to enthuse investors and have put a big question mark around the raising of its second Vision Fund of $100 billion comprising of equity and debt.
  • According to several people directly aware of ongoing discussions, SoftBank has been mulling two deals for over six months now – a $200 million investment in regional language news aggregator Dailyhunt, and a $300 million funding in eyewear retailer Lenskart.
  • ” The capital for both Lenskart and Dailyhunt has to come from the second vision fund, because Fund 1 is fully deployed, with money left only for debt repayments and some follow on deals,” said the first person cited above, a senior fund manager with a venture capital firm who requested anonymity.
  • Softbank’s investment track record shows that it has not made a single fresh investment in India so far this year, data from Tracxn indicates.

Read full article: livemint.com