SoftBank Bet On Indian Startups Like Paytm, Zomato — Now Its Looking To Cash In

The story was first published on the Benzinga India Portal.

SoftBank Group Corp (OTC: SFTBY) is reportedly set to sell stakes in Paytm and Zomato as the Japanese investment firm looks to turn a profit on its bets following a recent rally in their share prices.

What Happened? The Masayoshi Son-led conglomerate plans to sell shares of Paytm parent One97 Communications and food aggregator Zomato gradually in smaller tranches on the open market rather than through a block deal, Moneycontrol reported, citing sources.

On the Indian markets, Paytm has surged 66.8% so far this year, currently trading at INR 887.60 ($10.84), while Zomato has gained nearly 24% to sit at INR 74.65 ($0.91). The initial purchase prices for Zomato and Paytm were around INR 65 ($0.80)- INR 70 ($0.85) and INR 830 ($10.13) - INR 840 ($10.25) per share, respectively.

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Holding an 11.17% stake in Paytm and 3.4% in Zomato, SoftBank is reportedly looking for partial exits from high-performing companies.

Earlier this week, the Japan-based firm sold a part of its stake in eyewear company Lenskart to private equity firm ChrysCapital, making the investment firm over $70 million from the stake sale, sources told the publication.

SoftBank’s active investments in Indian startups have slowed this year after a series of losses incurred by its Vision Funds, with a cautious and selective approach replacing its previously vigorous participation in Indian funding rounds.

SoftBank’s decision to sell the stakes comes days after it reported a record annual loss of $7.2 billion for the financial year ending March 2023.

Despite the losses, SoftBank remains a significant player in India’s tech investment landscape, with a history of backing startups with close to $12 billion invested in the past six years.

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