Tag: softbank subsidiaries

Startups Funded Through SoftBank’s Vision Fund

The world we live in is always in need of innovation. Be it from domestic help to data analysis. For all of this one thing is unavoidable – investment. With an aim of investing in transformative technologies, The Japanese company SoftBank has initiated a $100 venture capital fund called the visions fund.

The Vision Fund was a materialisation of a talk between Masayoshi Son, Chairman of SoftBank and the crown prince of Saudi Arabia Muhammed Bin Salman. As the name suggests, the Vision Fund envisions a long-term growth of companies for the benefit of humanity.

Being the biggest venture capital fund in the world, their plans for investment are almost equal to the global venture capital investment of the world. Most of their companies are in the transportation and logistics sector followed by consumer services and frontier technologies. Here is a glimpse of a few startups that are funded by SoftBank’s Vision Fund

Zeta
ByteDance
Trax
Firstcry
Lenskart
Meesho
Oyo Rooms
Flipkart
Unacademy
OakNorth
Grofers
Paytm
Biofourmis
Klarna
Eightfold AI
Whatfix
FAQ

Zeta

The banking startup is the latest unicorn now. In May 2021, it raised $250 million in a series C funding of Vision Fund. This has raised the value of the firm to $1.45 billion. It was founded by Bhavin Turakhia and Ramki Gaddipati in 2015. Zeta provides a modern and cloud native platform to improve the cost to income ratio and consumer experience.

ByteDance

With a mission to “Inspire creativity and enrich life”, ByteDance is a startup that is spread over 150 markets with offices in 126 cities. They offer high quality Global Creation and Interaction Platforms as and while ensuring that the digital life of billions of its users are made beautiful. It was found in 2012 in a four bedroom apartment. In 2019, SoftBank’s Vision Fund invested in ByteDance and its corporate value quadrupled soon after.

Trax

Making in-store execution easier, Trax has been very useful to both retailers and customers. They say that through them the best of digital technologies comes together in the physical reality for the best experience of the users. In 2021, it secured $640 million funding lead by SoftBank Vision Fund. Trax will continue to optimise its retail stores through creating awareness about changing store condition and improving purchasing intent.

Firstcry

Founded in 2010, It aims to be the largest retailer in child and mother care products in the world. In 2018, SoftBank Vision Fund bought a 40% stake at a rate of $400 million which makes them the biggest investor in the company. It also valued Firstcry at $1.1 billion at that time. Today, they have a customer base of over 20 million families. Under the leadership of Supam Maheshwari, they continue to conquer greater heights in the business realm.

Lenskart

It is a startup that revolutionised the untapped market of opticals. It is indeed a magical unicorn of India and there is no surprise in Vision Fund investing in Lenskart. Beginning from contact lenses, today it has a range of prescription glasses and sunglasses as well. It was launched in 2010. It fared really well in business and was aided by SoftBank Vision Fund in the year 2019. They invested a total of $275 million after which it was valued at $1.5 billion. In 2020, Lenskart generated a revenue of 1000 crore.

Meesho

The top rated reselling app of India was found by two IIT Delhi graduates Vidit Aatrey and Sanjeev Barnwal. They have transcended beyond earning profits for themselves alone by helping small businesses and individuals to set up their own online stores.

In the latest funding round of Vision Fund (2021), it invested $300 million which raised its value to an enviable $2.1 billion. Earlier, when it was valued at $700 million, they had received a funding of $125 million in 2019. The latest funding is three times greater than last time. It was the fourth deal in the second Vision Fund in India.

Oyo Rooms

The most popular hospitality firm that upturned the ways of hotel booking raised $807 million along with RA Holdings. In this SVF has picked up 9626 holdings of Series F CCPS for $506 million. This will make SVF entitled to 50.5% stake in the firm. Oyo has always surprised us by expanding to countries like wildfire. It is expected that this fund will be used to increase the efficiency of the company by delivering the best services.

Flipkart

Flipkart is a very familiar name in the e-commerce industry for the past few years. Its growth has been tremendous and inspiring. Softbank Vision Fund had invested a sum of $2.5 billion in 2017. Now, Flipkart is completing its merger with Walmart and SoftBank has only sold 20% of its stake during the process and thereby continues to stay invested. Softbank is now again trying to invest in Flipkart.

Unacademy

It is a Bangalore based Education technology firm which was founded in 2015. It began its journey as a YouTube channel in 2010 and its growth over the decade is commendable. Unacademy received a sum of $150 million from SoftBank’s Vision Fund in 2020. This will take the committed firm’s overall value to $1.4 billion. This is a triple gain as far as the firm is concerned in a span of 6 months. They will be using the fund to launch new products and expand the organisation.

OakNorth

The UK based bank for small and medium sized companies was founded in 2013. It gained regulatory approval in 2015. The firm was founded by Rishi Khosla and Joel Perlman. In February 2019, SoftBank invested $440 million in OakNorth and its value skyrocketed to $2.8 billion. Many times, it lends more than $5 billion which is higher than its counterparts. However, they recover more than 90% of that money. Today, it is one of the highly valued startups in Europe.

Softbank's Biggest Investments — **Softbank’s Biggest Investments**

Grofers

Founded in 2013, Grofers is a grocery delivery service in India. It allows you to order a large variety of products through their online supermarket. Their potential did not skip the eyes of SoftBank either. In 2020, they invested $55 million in this firm to help them further improve their efficiency and services. The bank’s trust in the business can be further reiterated by the fact that they hold 46% of the total holdings.

Paytm

Since its launch in 2009, Paytm has transformed the money paying etiquette of people in India and many other e-commerce payment platforms followed suit. In 2019, it was founded by Vijay Shekhar Varma. Paytm raised $1 billion from Vision Fund along with Ant Financial Services. The new fund will be used to ramp up the expansion of the firm into rural India. They aim to popularise payments in rural India online.

Biofourmis

It is a health tech company that makes use of machine learning and AI to improve services in the health sector. It was founded by Kuldeep Singh Rajput with a team of committed members backing him. Together they have been successful in improving outcomes of major healthcare providers. In 2020, they raised $100 million through the Series C of Vision Fund. This was indeed a booster shot for them. They are now on their path to develop better portfolios which are inclusive of digital therapeutics for pain and cancer.

Klarna

Klarna Bank AB or Klarna, as it is commonly termed, is a Swedish fintech company that is mainly associated with online financial services to support payments for online storefronts, direct payments, and post-purchase payments. The company is headquartered in Stockholm, Sweden and boasts of more than 3,000 employees, most of whom work from the headquarters.

With the latest investment round, Klarna announces an equity funding of $638 million. This equity funding has been led by SoftBank’s Vision Fund 2, which was then followed by additional participation primarily from Adit Ventures, Honeycomb Asset Management, and WestCap Group. The latest round of funding raised the valuation of Klarna to $45.6 billion. This recent funding round is aimed to support the international expansion of the company and further capture global retail growth.

Eightfold AI

Eightfold AI, as the name indicates, is a Talent Intelligence platform powered by Artificial Intelligence. Eightfold AI announced on Thursday, June 10, 2021, that the company has been successful in raising a fund close to $220 million in the Series E funding round led by SoftBank’s Vision Fund 2.

The company has been successful in raising more than $410 million to date, with around $350 million coming in the past six months. According to Eightfold AI’s Founder and CEO, Ashutosh Garg, the company will continue to use the funds to widen its operations in India, with investments focused on the most talented data scientists and engineers across the country. This way Eightfold AI would ensure that its funds are used for fast and effective growth and development of its talent intelligence platform and further expanding its growing partner ecosystem.

Whatfix

Whatfix is a SaaS-based company, which primarily focuses on providing in-app guidance and support for software products and web applications. In the Series D funding round of the company, Whatfix announced that it has raised $90 million. This recent round of funding was led by Softbank’s Vision Fund 2, followed by other participations including that of Eight Roads Ventures, Sequoia Capital India, Dragoneer Investment Group, F-Prime Capital, and Cisco Investments.

Whatfix claims to have tripled its investments after the completion of this recent round of funding, according to TOI. The firm has reportedly raised around $139.8 million in the last segment alone and with that in, the company is presently valued at $600 million.

With the latest round of funding, Whatfix aims to strengthen its position in the US and look for further expansion in Europe and the Asia Pacific. It also strives to focus more on product innovation to provide personalized user experiences with effective use of Artificial Intelligence.

Here are a few other startups in which SoftBank’s Vision Fund have invested in

Name of the company	Year of Investment by SBVF	Amount of investment
Ola	2014	$210 million
Delhivery	2019	$350 million
Policy Bazaar		$200 million
OpenDoor Labs	2019	$300 million
Cameo	2021	$100 million
Banco Inter	2021	$471 million
Exeger	2019	$10 million
Zume Pizza	2018	$375 million
One Tap Buy	2018	$17.32 million
Compass	2018	$400 million

Conclusion

There was a lot of criticism with regard to the functionalities of Vision Fund. Many opinionated that the mode of its functioning was hitherto unseen. The loss it faced in the last year further sharpened the criticisms against it. However, it was able to come back with a bang and give a sharper reply to the critics through its economic performance.

The performance of the companies in which it invested is a testimony to the win of SoftBank as well. The Japanese multinational company has significantly helped a plethora of startups to ace in their business through the Vision Fund.

By extending help to startups, it also didn’t fall back in emerging as the biggest profit earning company in the history of Japanese companies. After a year of unprecedented loss it has emerged as one of the world’s biggest earning firms in the world. SoftBank and its Vision Fund will always remain as a ray of hope for all startups.

FAQ

Who owns SoftBank?

SoftBank’s founder and CEO is Masayoshi Son who is the third-richest person in Japan, with a $20.6 billion personal fortune. He owns $45 million worth of real estate in Tokyo as well as a $117.5 million estate in Silicon Valley.

What is SoftBank Vision Fund?

Softbank Vision Fund is the world’s biggest innovation-centered investment finance, with over $100 billion in the capital.

How does SoftBank earns?

SoftBank owns stakes in many technology, energy, and financial companies. It also runs Vision Fund, the world’s largest technology-focused venture capital fund.

June 14, 2021

Case Study: The Story of SoftBank and its Vision Fund

SoftBank Group Corp. is a Japanese global conglomerate headquartered in Tokyo. The SoftBank Group has launched SoftBank Vision Fund, the world’s biggest innovation-centered investment finance, with over $100 billion in the capital. In this article, we have discussed SoftBank, Its Vision, Its Stakes Possession, SoftBank Vision Fund, SoftBank’s Vision for India, Its Marketing Strategy, etc.

SoftBank – About & Vision
SoftBank – Softbank Vision Fund
SoftBank – Name, Logo & Tagline
SoftBank – Marketing Strategy
SoftBank – Stakes Possession
SoftBank – Growth
SoftBank – Yahoo Japan Story
SoftBank – Vision for India
SoftBank – FAQ’s
SoftBank – Conclusion

SoftBank – About & Vision

SoftBank Group Corp. is a Japanese global conglomerate headquartered in Tokyo. SoftBank was positioned in the Forbes Global 2000 list as the 36th biggest open organization in the world, and the second biggest organization to be traded in Japan’s open market after Toyota. The organization possesses stakes in top technology companies like Softbank Corporation, Softbank Vision Fund, Arm Holdings, Fortress Investment Group, Sprint, Alibaba, Uber, and many more.

SoftBank – Softbank Vision Fund

Softbank Vision Fund is the world’s biggest innovation-centered investment finance, with over $100 billion in the capital. The organization is known for its initiative backed by originator Masayoshi Son. The Fund presently has its fingers in broadband, fixed-line broadcast communications, web-based businesses, innovation administrations, media and advertising, and other domains.

SoftBank Vision Fund is a subsidiary of the conglomerate Softbank Group. The company is specialized in growth capital and social impact investments that revolve mostly around software companies. Mostly, the funds are invested in latest technology sectors such as IoT, AI, Robotics, Communications Infrastructure, Telecoms, Computational biology, Biotech, Cloud Technologies and Software, Consumer Internet Businesses, FinTech, and Mobile Apps. The Fund is designed in such a way that it’ll be a catalyst for technology progress in anticipation that it will expand SoftBank’s capabilities, accelerating progress towards SoftBank 2.0.

It also aims to invest in businesses and foundational platforms that SoftBank believes to revolutionize and innovate the world tomorrow.

SoftBank – Name, Logo & Tagline

The SoftBank logo derives from Kaientai, a maritime exchanging organization that existed during the end of the Tokugawa shogunate.

Softbank Corporation Logo

SoftBank – Marketing Strategy

The Softbank group uses an effective and smart “4P” marketing strategy to carry out its business across multinational market places. Here’s a description of the 4P model used by SoftBank:

Products & Services

SoftBank deals in money, broadband, semiconductor structures, innovative administrations, broadband and what not. Softbank also has prominent wind power plants, sun based power plants, and other energy generation sources. It is a conspicuous player in the residential telecom showcase in Japan which incorporates closeout of mobiles, repaired line telephone utilities, and information correspondence.

It additionally furnishes benefits in relationship with Yahoo Japan and “IBM Watson”, a cell phone application grown together with IBM Japan. As an internet provider, Softbank offers different choices, for example, web through optical strands. Softbank Air is a popular web information administration service offered by the behemoth. Before the dispatch of iPhone 4s, SoftBank was the main iPhone bearer in Japan.

Price

SoftBank offers a different worth which includes evaluating arrangements to serve its purchasers the best. Softbank has a wide extension to utilize these strategies exceptionally, particularly in the telecom and web advertisement domains where it has different contenders like NTT and AU. Since Softbank faces escalated rivalry from its rivals, its valuing relies on relative market evaluation. Softbank uses packaging techniques to value its administrations higher. This concentrates the vast majority of the purchaser’s excess. It likewise uses worth estimating and has presented worth packs that are charged for the value conveyed.

Place

SoftBank works through wholesalers and retailers far-reaching the nation over. Through its wide chain of selective stores in shopping centers and commercial spaces, it draws in a wide range of buyers. Being a multi-year old organization, Softbank has a huge shopper base. It reaches its customers through online store and cell phone applications. Softbank additionally finds certain stores on its site that use staff proficient in English for engaging with its global clients.

Promotion

SoftBank has top-notch advancement systems in its advertising mix to connect with buyers, particularly those concerning mobiles. It gives complimentary wireless internet at different bistros and railroad stations to expand its perception and image in the market. It gives enormous accentuation on ads distributed in papers, magazines, online networking, and TV.

Here are the other Ps to make it the promoting blend of Softbank.

People

The Softbank gathering is profoundly reliant on its workers since they are the main impetus of the organization. They have utilized 69154 representatives since 2016. The essential spotlight is on worker commitment. And this in turn ensures client satisfaction. Since the well-being and security of the workers legitimately impact their exhibition, the organization guarantees the equivalent.

Procedure

Procedures in Softbank are completed in the most transparent manner. The website helps clients purchase the administrations they are interested in. The point-by-point guidance makes it simpler to perform the purchase procedure. Moreover, client care services assist the client with all sorts of questions and challenges.

SoftBank – Stakes Possession

                SoftBank's Stakes Possession

Company Name	Total Shares Hold(in %)	Company Name	Total Shares Hold (in %)
Ola	30	Slack Technologies	5
Renren	42.9	WeWork	80
InMobi	45	Zhongan Online P & C Insurance	5
Hike	25.8	Compass	22
SnapDeal	30	AUTO1 Group	20
Fanatics	22	Wag	45
Improbable Worlds	50	Katerra	28
Paytm	20	Cruise Automation	19.6
Oyo	42	Ping An Insurance	7.41

SoftBank – Growth

SoftBank had a solid beginning to the 2020 budgetary year, accomplishing income increments over the entirety of its portions and including Yahoo Japan as a combined backup to its business. This brought its income to about ¥1.16 trillion.

The buyer section i.e. the center business of SoftBank, expanded its income to around ¥658 billion, an expansion of over ¥22 billion. The portion’s telecom administration incomes expanded by 6.2% year on year to ¥528 billion. Inside its telecom administration incomes, versatile interchanges income expanded by ¥23 multi-year on year to ¥423 billion, with the addition essentially credited to increments in cell phone supporters and a decline in the month to month limits for its Ultra Giga Monster Plus plan. This plan isolates handset installment and administration charges.

SoftBank revealed it had 22.5 million shopper cell phone supporters during Q1 2020 compared to 20.7 million in the same quarter of 2019. Its venture fragment went from winning ¥148 billion to ¥154.5 billion in income year on year. This included versatile income which expanded by 4% to ¥68 billion, fixed-line income which diminished by 6% to nearly ¥49 billion, and other income that expanded by around 24% to ¥37.5 billion.

The increments in the portable and business arrangements incomes were because of bounces in cell phone endorsers and deals from cloud administrations. Fixed-line incomes diminished because of the unit cost of telephone utilities became cheaper. The endeavor portion’s working pay was ¥28 billion, a 17.7% expansion.

SoftBank – Yahoo Japan Story

Yahoo Japan, the new section that was solidified into SoftBank budgetary outcomes, had its income bounce from ¥226 billion to ¥235 billion, a 3.3% expansion year on year. Of this, trade income expanded by 4.8% year on year to ¥165 billion, media income stayed relentless at around ¥72 billion, and other income diminished by 13% year on year to around ¥1.4 billion.

The expansion in trade income was predominantly because of an elevation in income-related with an increment in exchange, an incentive in business administrations. While Yahoo Japan’s income expanded over the previous year, its working salary dropped 8% because of ventures geared towards growing its online installments stage.

The purpose of making Yahoo Japan a solidified backup, SoftBank stated, was to reinforce its association with Yahoo Japan in the making of such new organizations. “The two organizations will upgrade the administration assets designation dependent on a coordinated methodology that empowers them to expand cooperative energies,” it said.

Its appropriation fragment—which offers items and administrations essentially tending to ICT, cloud administrations, and IoT arrangements—hopped from ¥92 billion to ¥116 billion, up by 26% year on year. This was for the most part due to firm offers of existing items, for example, PCs and servers, notwithstanding an expansion in the number of licenses for cloud administrations. The conveyance section’s working salary was nearly ¥5.3 billion, an expansion of 32% year on year.

Altogether, SoftBank’s working salary was ¥269 billion, up by 22% from the year-earlier.

The expansion was fundamental because the Japanese combination was encountering relentless development in its different telecom organizations; the working pay of its telecom organizations over the Consumer, Enterprise, and Distribution sections was expanding by over ¥20 billion altogether. With another solid execution in its Q1 2019 outcomes, the Japanese aggregate proceeds with its upward direction, having expanded its working pay by 81% for FY 2018 contrasted with FY 2017. The gigantic bounce was driven by the SoftBank Vision and Delta Funds which dramatically multiplied the working pay.

SoftBank likewise declared a second SoftBank Vision Fund a month ago, comprising of $108 billion (¥11.7 trillion) in reserves.

SoftBank – Vision for India

SoftBank Vision reserve was set up in 2017 with an all-out corpus of $100 bn. The majority of this vision reserve was raised from Saudi Arabia and Abu Dhabi. The organization has put around $10B so far in Indian new businesses.

SoftBank has seen an 80% year-on-year development in its working pay for FY 2019. The Son-driven organization ascribed this development to an unrealized addition of about $12.5B from its interests in ride-hailing organization Uber, Indian accommodation organization OYO, and other portfolio organizations. In general, its interests in Flipkart and OYO were responsible for an addition of $2.7B, split among acknowledged and unrealized increases.

The closeout of SoftBank’s offer in the Indian web-based business goliath Flipkart brought about the addition of $1.3Bn for the Japanese organization. Flipkart was purchased by Walmart for $16B in August 2018. OYO’s valuation has expanded to $1.4bn in FY 2019. SoftBank’s other key interests in India include Ola, OYO, Hike, Paytm, FirstCry, Grofers, Delhivery, and Paytm Mall. Not long ago, SoftBank was said to be pondering on the first stock sale of its $100B SoftBank Vision Fund.

SoftBank – FAQ’s

Is SoftBank a bank?

SoftBank Group Corp. started out in 1981 as a distributor of computer software. As software is called “soft” in Japanese, the name “SoftBank” literally means “a bank of software.” The word “bank” was chosen based on the company’s grand aspiration to be a key source of infrastructure for the information society.

Who owns SoftBank?

SoftBank’s founder and CEO, Masayoshi Son, is the third-richest person in Japan, with a $20.6 billion personal fortune. He owns $45 million worth of real estate in Tokyo as well as a $117.5 million estate in Silicon Valley.

What is SoftBank Vision Fund?

Softbank Vision Fund is the world’s biggest innovation-centered investment finance, with over $100 billion in the capital.

What Marketing Strategy does SoftBank follow?

The Softbank group uses an effective and smart “4P” marketing strategy to carry out its business across multinational market places.

SoftBank – Conclusion

SoftBank Vision Fund is a part of the multi-national conglomerate Softbank Group. The company is specialized in growth capital and social impact investments that revolve mostly around software companies. It also aims to invest in businesses and foundational platforms that SoftBank believes to revolutionize and innovate the world tomorrow.

May 10, 2021