SoftBank Vision Fund Reports $544M Loss After Complete Paytm Exit

SoftBank's Vision Fund 1 recorded a loss of $544 million on its investment in fintech platform Paytm. The total investment on Paytm was $1.6 billion, as per the Japanese conglomerate. 

SoftBank Vision Fund 1 (SVF 1) is a venture capital fund that invests in privately held technological firms with valuations above $1 billion. Recently, SoftBank left its holdings on Paytm. 

Softbank investment arm Softbank Vision Fund exited from Paytm in the June quarter at a loss of around $150 million, sources aware of the development said. Softbank invested about $1.5 billion in One97 Communications, the owner of the Paytm brand, in tranches in 2017. 

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"Softbank has exited Paytm at a loss of 10-12 percent. The total loss is around $150 million," one of the sources said. 

Softbank held around 18.5 percent stake in Paytm before the company's initial public offering (IPO) in 2021. It held a 17.3 percent stake through SVF India Holdings (Cayman) and 1.2 percent through SVF Panther (Cayman).

SVF Panther sold its entire stake during the IPO for Rs 1,689 crore, about $225 million. 

"Softbank announced that it will exit Paytm in 24 months from the time of the IPO. The exit was in line with Softbank's plan. However, the company did anticipate loss at that time," another source said. 

Softbank had acquired Paytm shares at an average price of about Rs 800 apiece. 

Billionaire Warren Buffet's Berkshire Hathaway Inc. also exited Paytm around seven months ago by selling shares at a lower-than-acquired price. The company had acquired a 2.6 percent stake in Paytm for Rs 1,279.7 per share at an aggregate value of Rs 2,179 crore, as per an official document. Over the past decade, SoftBank has invested $10.6 billion in Indian tech start-ups. As per Moneycontrol, until now SoftBank booked its exit of around $6-6.8 billion. 

(With inputs from PTI)