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Japanese technology conglomerate SoftBank, which backed One97 Communications — the parent entity of Paytm, cost SoftBank’s Vision Fund I (SVF I) $600 million loss in FY2022. 

Paytm’s stocks have taken a beating since it listed on the Indian public markets in November 2021. At the time of IPO (initial public offering), Paytm had a market capitalisation of nearly Rs 140,000 crore, which has since reduced to Rs 33,529 crore. 

Another SVF I portfolio company from India, insurance marketplace PolicyBazaar, which went public during the financial year alongside Paytm, gained $300 million in valuation according to the earnings report filed by SoftBank. 

The overall loss of unrealised valuation for SVF I during the financial year stood at $23.9 billion, which includes global companies such as ride-hailing apps Didi, Uber, and food delivery major Grab. 

The earnings report also indicated that SoftBank valued its shares in Ola Electric Mobility at $556 million and InMobi at $597 million during transfer of the company’s shares to its SoftBank Vision Fund II (SVF II) during the financial year. This is based on “fair value available at the time of the transfer if the transfer is made by a sale,” said the report. 

Loss of unrealised valuation in SVF II portfolio companies stood at $2.2 billion during the financial year ended March 31, 2022. 

The shrinking value of SoftBank’s investment portfolio is reflective of the rout in the global markets. Recently, The Financial Times reported that New York based hedge fund Tiger Global saw nearly two-thirds of its gain on assets since its launch in 2001 being wiped-off.