SoftBank Group has reported a strong financial turnaround, posting a $3.5 billion net profit in Q4 FY25, bouncing back from losses in the previous quarter. However, markdowns in Swiggy and Ola Electric Mobility have negatively impacted its India portfolio.
Vision Fund 2 Takes a Hit
While SoftBank’s Vision Fund 1 recorded a $6.1 billion gain, Vision Fund 2 suffered a $3.4 billion loss, largely due to declining valuations in Swiggy and Ola Electric. The fair value of investments in public companies held by Vision Fund 2 fell 21.7% quarter-on-quarter, dragging down overall portfolio performance.
Swiggy and Ola Electric Struggle
- Swiggy’s stock has declined 40% since January, as quick commerce competition intensified, leading to higher cash burn and a ₹1,081 crore net loss in Q4.
- Ola Electric lost market share to Bajaj Auto and TVS Motor, facing after-sales service issues that further dented investor confidence.
SoftBank’s Global Gains Offset India Losses
Despite setbacks in India, SoftBank’s investments in Alibaba, T-Mobile, and Deutsche Telekom helped drive its Q4 profitability.
Future Outlook
SoftBank remains optimistic about long-term recovery, with Vision Fund 1 continuing to deliver strong returns. However, India’s startup ecosystem faces challenges, as investors reassess valuations amid rising competition and regulatory shifts.
With SoftBank’s first annual profit in four years, the company is strategizing to stabilize its India investments, while maintaining global tech dominance.
