SoftBank has successfully made a substantial return on its investment, securing a remarkable $650 million (approximately Rs. 5,400 crore) in profits after fully divesting from PB Fintech, the parent company of the renowned insurance marketplace PolicyBazaar.
Initially investing nearly $200 million in the Gurgaon-based firm, SoftBank concluded its exit by selling its remaining stake for approximately $109 million in mid-December. This strategic move aligns with SoftBank’s ongoing approach of gradually reducing its holdings through public market transactions, marking a significant development in its investment strategy over the past year.
In addition to its exit from PB Fintech, SoftBank made headlines in December by withdrawing its investment from Zomato, following its earlier acquisition of a stake in the food delivery platform through the Blinkit (previously Grofers) deal in 2022.
Recent reports indicate that SoftBank’s divestments extended to stakes worth $1.8-1.9 billion during public offerings and post-listing sales in four prominent Indian startups—Zomato, Paytm, PB Fintech, and Delhivery—that went public in 2021 and 2022. Notably, SoftBank had invested a total of $2.3-2.4 billion in these four companies.
Looking ahead, as of September 30, mutual funds like Franklin India and Mirae Asset held a 7.83% stake in PB Fintech, with Tencent and Steadview Capital being other major investors. Founders Alok Bansal and Yashish Dahiya retained 1.67% and 4.64% stakes, respectively, by the end of the September quarter.
Furthermore, SoftBank’s portfolio companies, including FirstCry, Ola Electric, and Swiggy, are poised for upcoming IPOs in 2024. FirstCry and Ola Electric have already filed draft IPO papers in December, signaling a dynamic year ahead for SoftBank’s investment ventures.