SoftBank has reported a substantial downturn in its Indian investments during the January-March quarter of 2026, resulting in over $600 million in paper losses for its Vision Fund. Key players such as Swiggy, Ola Electric, Meesho, Delhivery, and FirstCry saw their market values decline, significantly impacting the fund's overall performance.
The losses from the Indian portfolio accounted for more than 14% of the Vision Fund's total mark-to-market losses on public holdings, which totaled approximately $4.2 billion for the quarter. Notably, only Lenskart, an eyewear retailer, provided a silver lining with a gain of around $100 million.
Market Challenges
The decline in SoftBank's Indian investments reflects ongoing concerns regarding profitability and competitive pressures in the market. Many of the companies in which SoftBank has invested went public in the last two years and are now facing scrutiny over their post-listing performance.
SoftBank's Broader Performance
Despite the setbacks in India, SoftBank reported a net profit of $12 billion for the quarter, largely driven by gains from its investment in OpenAI, a leading AI company. The Vision Fund itself recorded gains exceeding $19 billion from other investments.
Investment Strategy
SoftBank has been an aggressive investor in India's startup ecosystem, pouring over $15 billion into various sectors including food delivery, mobility, e-commerce, and logistics. However, the recent performance of its Indian portfolio has led to a more cautious approach, with fewer new deals being made.
Historical Context
This is not the first instance of mixed returns for SoftBank in India. The company has previously faced significant losses, such as over $500 million on its Paytm investment, while also securing profits from other ventures like Policybazaar and Eternal.
Key Takeaways
- SoftBank's Indian investments have faced a significant downturn, resulting in over $600 million in losses.
- The overall performance of the Vision Fund was bolstered by gains in other sectors, particularly technology.
- SoftBank's cautious investment strategy in India may impact future growth opportunities.
