SoftBank vision funds register profit for fiscal year ended March 2024
The profit push for SoftVank Vision Fund largely came from the public listing of semiconductor company ARM.
SoftBank has posted a gross profit of 724.3 billion yen ($4.64 billion) for its Vision Fund for the fiscal ended March 2024. The investment arm had been incurring losses since 2021.
The gains made by SoftBank's Vision Fund led to a net profit of 128.3 billion yen ($820 million) for the fiscal year ended March 2024 compared with a loss of 4.3 trillion yen ($27.5 billion) a year ago. The main investment vehicles of this fund are—Softbank Vision Fund 1 (SVF1) and Softbank Vision Fund 2 (SVF2).
According to a statement from SoftBank, since inception, SVF1 has earned a gross gain of $16.7 billion and SVF2 had a gross loss of $19.3 billion.
SVF1 had a cumulative return of $106.3 billion on an investment of $89.6 billion. The investment gain was $5.3 billion for the fiscal year, including an investment gain of $5.6 billion arising from the sale of the semiconductor company ARM's shares to a wholly-owned subsidiary of the company.
In the case of SVF2, it saw $33.1 billion in cumulative returns on $52.4 billion investments. The investment loss was $1 billion for the fiscal year ended March 2024.
However, for the fourth quarter of the fiscal year, the two vision funds reported a combined loss of $300 million after reporting profit for three straight quarters.
Softbank Vision Funds have become one of the largest investment vehicles for the startup ecosystem across the world. However, certain reversals in and Alibaba led to huge losses in these funds. In India, Softbank is a key investor in startups such as , , , , etc.
Edited by Kanishk Singh