SoftBank to Make Lucrative Gains from India's Startup IPO Spree

Tokyo based venture capital firm SoftBank Group is on its way to become one of the world's most prolific technology investors owing to the first wave of startup IPO rush in India. The firm finds itself in an advantageous position to reap the windfall of the wave of IPOs that began in July and is expected to continue throughout the next year.

SoftBank’s two Vision Funds have invested close to $11 billion in Indian startups so far. As estimated by startup data tracker Tracxn, the VC firm is expected to rake in close to $7 billion in notional gains from the IPO of financial services companies Paytm, PolicyBazaar; logistics startup Delhivery; and hospitality company Oyo; according to estimates by Tracxn, a startup data tracker.

Paytm’s three day subscription period for shares ended mid last week and the fintech startup now plans to raise INR 183 billion at a valuation of up to nearly $20 billion.

Another startup backed by SoftBank, PolicyBazaar clsoed offering last week and was oversubscribed by 16 times. The company managed to raise $750 million at a valuation of $6 billion.

Both these fintech firms will list in the upcoming days; Delhivery and Oyo are expected to list in 2022.

Ride-hailing startup Ola and digital advertising agency InMobi are the next SoftBank backed startups looking to explore public listings.

The massive gains made from public listings of Indian startups will help SoftBank as it has been struggling with investor skepticism over flagging share prices.

It is interesting to note that SoftBank had struggled on its initial bets in India as its initially backed startups did not do as well. SoftBank is said to have lost a combined $1 billion or so into Snapdeal and Housing.