SoftBank’s Vision Fund Thrives with Q1FY24 Profits Amidst Group Challenges
- ByStartupStory | August 8, 2023
SoftBank’s Vision Fund, the investment arm of the conglomerate, has marked a significant achievement, returning to profitability in the first quarter of FY24 after a span of six quarters. The standalone quarterly profit of $1.1 billion was driven primarily by the increased valuations of the fund’s public portfolio companies. Notably, Vision Fund has provided backing to several Indian startups including Paytm, Policybazaar, and Delhivery, contributing to its positive performance.
However, SoftBank Group, the parent company, faced continued challenges, reporting a net loss of $3.3 billion in the same quarter, extending its loss streak for the third consecutive quarter. This difficult period is particularly evident as technology startups navigate through ongoing uncertainties. SoftBank emphasized its commitment to closely monitor the performance of both funding avenues within the Vision Fund and to foster collaboration across different regions.
Yoshimitsu Goto, CFO and CISO of SoftBank Group Corp, highlighted the conglomerate’s determination to intensify investments with a strategic focus on artificial intelligence. The company’s chipmaking division, Arm, exhibited resilience by generating $641 million in revenue during the first quarter, even amid a slightly subdued phase for the global semiconductor industry. Notably, Arm is gearing up for a prospective initial public offering (IPO) in September, with aspirations for a valuation surpassing $60 billion.
In a recent development, Rajeev Misra, a key figure and chief lieutenant to SoftBank Founder Masayoshi Son, made a pivotal transition last year, relinquishing important responsibilities within the conglomerate. This move was executed as part of the preparations for the launch of a new fund. As SoftBank navigates through the complexities of the evolving market, its multifaceted ventures continue to shape its trajectory.
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