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<\/p>\nA top management leadership team from SoftBank has been coming to India in the last few days to meet the founders of start-ups and other investors, signalling the country’s emergence as a pivotal market for the global investment giant.<\/p>\n
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Based on current estimates, India accounts for nearly 10 per cent ($20 billion) of SoftBank’s invested assets under management (AUM) globally.<\/p>\n
That makes the country its third largest market after the US and China.<\/p>\n
Sources said SoftBank CEO Masayoshi Son’s close confidant, Greg Moon, who is the managing partner of Softbank Vision Fund, will be in Mumbai to have talks with their investee companies.<\/p>\n
He is part of the three-member top team which is managing the two Vision funds after Rajeev Misra, former CEO of SoftBank Investment Advisers, took a backseat in the company.<\/p>\n
The other member of this crack team is Navneet Govil, COO, CFO and board director (technology and growth equity), who flew into Bengaluru a few days ago for the group’s first “Sozo Connect” which convened founders and investors from the local tech ecosystem.<\/p>\n
Keeping him company was Sumer Juneja, managing partner and head of India in SoftBank Investment Partners, and one who also oversees Europe, the middle east, and Africa.<\/p>\n
The push to India was kickstarted by Son, who met founders as well as Bharti Airtel chairman Sunil Mittal in Delhi recently.<\/p>\n
A review of 26 portfolio companies shows that except for a few laggards, valuations in companies in which SoftBank has invested are far higher now than when it entered them.<\/p>\n
These include Lenskart, Swiggy, Of Business, FirstCry, and PolicyBazaar.<\/p>\n
However, a spokesperson for SoftBank did not respond to queries.<\/p>\n
Based on available data, SoftBank entered Lenskraft at a valuation of $1.3 billion.<\/p>\n
Its last fund raise, however, was at a valuation of $4.5 billion — an increase of 3.4x.<\/p>\n
Similarly, when the global investor entered Swiggy, it was valued at $4.8 billion, while its last fund raise valued the company at double that number — at $10.1 billion.<\/p>\n
SoftBank also invested in B2b and low-profile startup, Of Business, at a valuation of $1.4 billion. Yet in its latest fund raise, the company’s valuation went up to $7.5 billion.<\/p>\n
First Cry is yet another startup whose valuation has shot up since SoftBank entered it.<\/p>\n
Valued at $900 million at the time, it is currently valued at $3.5 billion.<\/p>\n
In fact, an upcoming secondary sale is expected at this price.<\/p>\n
In Oyo Electric, SoftBank invested $250 million, which helped the company hit a valuation of $1 billion.<\/p>\n
But based on the latest fund raise, the company is now valued at $5 billion.<\/p>\n
In the listed company Policy Bazaar.com, SoftBank had invested $199 million.<\/p>\n
However, when it sold a part of its holdings in two tranches, it made $500 million. SoftBank still has a residual stake in Policy Bazaar, valued at around $130 million.<\/p>\n
Some startups, however, pose challenges. SoftBank invested in OYO twice — once in 2015 when it was valued at $1 billion, and again later, when it was valued at $4-5 billion.<\/p>\n
Its carrying value in their books currently is at 3 billion, even though the company is negotiating secondary sales at around $7 billion.<\/p>\n
Similarly, its investment in Paytm, part of which has been sold, has given nominal returns.<\/p>\n
In several other companies, it is work in progress.<\/p>\n
For instance, edtech company Eruditus and B2B e-commerce platform ElasticRun have not raised any more money after Softbank entered them.<\/p>\n
Hence, there are no valuation yardsticks.<\/p>\n
In Meesho, which has gone from being a social commerce site to pure-play e-commerce, SoftBank invested at a valuation of $2.1 billion, but in its last fund raise, its valuation was at $ 4.9 billion, providing the Japanese investor a reasonable mark-up.<\/p>\n