Soft bank suffered huge loss of $1.4 billion by Indian startup Snapdeal deep down devaluation and other startups.
Japanese SoftBank Group Corp. has written down the value of its investments in online marketplace Snapdeal and cab aggregator Ola by $1.4 billion.
The two—Snapdeal run by Jasper Infotech Pvt. Ltd and Ola run by ANI Technologies Pvt. Ltd—are among SoftBank’s largest investments in India.
SoftBank notched up its second-best annual profit on cost cuts and a rise in subscribers at Sprint Corp. SoftBank’s operating profit for the year to end-March climbed 13% to 1.03 trillion yen (around $9 billion) on flat revenue growth.
SoftBank, a professional investors in Indian start-ups, is trying to sell Snapdeal to bigger rival Flipkart Ltd for about $1 billion. Meanwhile, Ola, which competes with Uber Technologies Inc., has managed to raise only about $350 million after hitting the fund-raising trail in June last year, with SoftBank alone putting in about $250 million. as per media reports.
Telecom giant Softbank Group has logged a record net profit in fiscal 2016, which ended in March. Its officials say strong performance of the group’s domestic operation drove the result.
Sales were about 78 billion dollars. That’s up slightly from the level for the previous year.
Net profit tripled to 12.5 billion dollars. It’s the first time the figure topped 1 trillion in yen terms.
Executives say earnings were also boosted by the sale of part of the firm’s stake in the Chinese online retail giant Alibaba Group.