Drumil Modi, Pune
Swiggy, Lenskart, OfBusiness, and FirstCry are all in different stages of preparation for their Initial Public Offerings (IPOs), according to Navneet Govil, Managing Partner and CFO of SoftBank Vision Fund.
Govil revealed that FirstCry will be launching its IPO by the end of 2023. SoftBanks portfolio companies have a total valuation of around USD 42 Billion.
Navneet Govil in an interview said that around 93 per cent of SoftBank’s portfolio consists of 473 firms, having a positive cash flow for the most part. Last six quarters the company faced massive losses but now the Vision Fund is set to resume investments.
Several firms in SoftBank’s portfolio have suffered financial issues or have shut down. Govil verified that underperforming businesses had been identified and penalized. SoftBank intends to sell its interests in these portfolio firms after they go public to make returns. Govil used Uber as an example, saying that SoftBank first invested USD 7.7 billion but eventually exited completely.
The company is not focused on investing in AI-centric firms which show strong growth potential across regions such as India, Europe, South America, and the United States of America.
Govil emphasized that investment requirements will be strict, emphasizing that, while no precise objectives have been set for individual countries, SoftBank maintains a cash position of more than USD 40 billion. SoftBank has secured $60 billion in commitments for its Vision Fund – II, of which $51.5 billion has already been spent, leaving USD 8.5 billion accessible for future investment possibilities.