SoftBank-Backed Swiggy, Lenskart, FirstCry, OfBusiness Set Stage For IPOs

Swiggy, Lenskart, FirstCry, and OfBusiness, all part of SoftBank's portfolio, are currently 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 to a media house that FirstCry is anticipated to file its IPO papers by the end of 2023. Collectively, SoftBank's portfolio companies hold a valuation of USD 42 billion.

In an interview, Govil stated that around 93 per cent of SoftBank's portfolio, consisting of 473 firms, have a positive cash runway extending beyond 12 months. Following a period of inactivity due to six consecutive quarters of losses, the Vision Fund is set to resume reinvestments.

SoftBank has experienced several companies within its portfolio encountering financial difficulties or shutting down. Govil confirmed that underperforming companies have been identified and marked down. Once these portfolio companies go public, SoftBank plans to divest its shares to generate returns. Govil cited the example of Uber, where SoftBank initially invested USD 7.7 billion but eventually exited completely.

SoftBank has recently divested stakes in both public and private entities in India, including Lenskart. The company now aims to focus on AI-centric firms with substantial growth potential across regions such as India, Europe, Latin America, and the United States.

Govil emphasised that the investment standards will be stringent, underscoring that while there are no specific targets set for different regions, SoftBank maintains a cash balance of over USD 40 billion. In its Vision Fund - II, SoftBank has secured $60 billion in commitments, of which $51.5 billion has already been invested, leaving USD 8.5 billion available for further investment opportunities.