24 C
Mumbai
Tuesday, February 7, 2023
spot_img

Investment giant SoftBank to cut startup funding as losses cross $13B

- Advertisement -

SoftBank is expected to reduce startup funding by more than half in 2022.

Japanese investment giant suffered a massive net loss of $13.14 billion in the last financial year. SoftBank posted a massive financial loss of 1.708 trillion yen ($13.14 billion) for the fiscal year ending March 31, warning it would be forced to decrease startup funding by more than half this year.

According to Nikkei Asia, the Japanese investment behemoth also disclosed its largest-ever quarterly net loss, 2.1 trillion yen ($16.2 billion), during the January-March quarter.

SoftBank also disclosed a record $27 billion loss for the year to its Vision Funds, owing to large losses in investments in digital businesses such as Coupang and Didi Global.

SoftBank spent $2.5 billion in the January-March quarter, compared to $10.4 billion in the preceding quarter. The investment giant put more than $46 billion of its money in startups in the previous fiscal year.

SoftBank CEO Masayoshi Son stated that “the amount of fresh investments (in startups) will be half or as little as a quarter” compared to previous year.

The company’s stock dropped 8% ahead of the news on Thursday, the lowest level in over two months.

According to Redex Research analyst Kirk Boodry’s estimations, “other dismal performers included Singaporean ride-hailing business Grab, US food delivery firm DoorDash, and Indian payments organization Paytm, which combined lost close to $5 billion throughout the quarter.”

“The investing environment remains tough,” SoftBank stated, citing fast-rising prices, increasingly complex geopolitical risk, and a global energy shock.

SoftBank’s $100 billion Vision Fund, which is funded by Saudi Arabia and Abu Dhabi, was unveiled in 2017.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest Articles