SoftBank Group Corp. on Monday said it has marked down its investment in Paytm by $400 million for the quarter ended June, adding to its overall loss of $23.1 billion for the period.
The tech firm’s investment cost in One97 Communications, the parent of Paytm, was $1.4 billion in 2017, made through a mix of primary and secondary share purchases. The fair value of its investment stood at $1 billion at the end of 30 June, according to its financial statement posted on Monday, indicating an on-paper loss of $400 million.
Paytm shares closed at ₹835 on Monday, gaining over 20% from ₹675 on 30 June.
The value attributed to Paytm in the June quarter is also higher than what SoftBank attributed to Paytm in the March 2022 quarter.
At the time, Paytm was marked down to $800 million, indicating a $600 million loss.
SoftBank has three India-listed companies from Vision Fund 1. Besides Paytm, Softbank reported it is in the money with respect to Delhivery and Policybazaar parent PB Fintech. All three companies went public over the last year.
SoftBank marked the fair value of Delhivery at $900 million, well over its investment cost of approximately $400 million, according to its latest report.
Delhivery went public on 23 May this year.
Its investment in Policybazaar is also marked up at around $300 million, from its investment cost of around $100 million.
However, shares of PB Infotech are down by over 57% since it went public and were trading at ₹557.20 on Monday.
SoftBank Vision Fund 1 reported a $9.4 billion loss in fair value in Didi Global in the latest quarter, following the Chinese government’s crackdown on companies listed in the US.
The firm said it had sharply cut back on investments from its vision funds as it was being selective.
In the April- June quarter, it had approved investments worth around $600 million, compared with $20.6 billion in the same period last year.
Its recent investments in India made from SoftBank Vision Fund 2 include consumer tech startups such as Lenskart, Meesho, and Unacademy, as well as software as a a service, or SaaS, investments such as Juspay and Whatfix.
