SoftBank Loses $350 Million on India Investments Including Ola, Snapdeal

SoftBank Loses $350 Million on India Investments Including Ola, Snapdeal

SoftBank Loses $350 Million on India Investments Including Ola, Snapdeal
HIGHLIGHTS
SoftBank wrote off JPY 39.28 billion in the value of shares in its India
The new set of numbers are lower than the loss recorded in November
The Japanese firm has so far invested close to $2 billion in India
Japan’s SoftBank Corp has booked an investment loss of JPY 39.28 billion ($350 million or roughly Rs. 2,345 crores) on its investments in India, including those in cab-hailing firm Ola and e-commerce company Snapdeal.

In the earning statement for nine months ended December, SoftBank wrote off JPY 39.28 billion in the value of shares in its Indian investments, which include Ola and Snapdeal.

“Gain or loss arising from financial instruments at FVTPL comprises mainly of changes in fair value of preferred stock investment including embedded derivatives, such as ANI Technologies and Jasper Infotech in India, designated as financial assets at FVTPL (Fair Value Through Profit or Loss),” SoftBank said in the earnings statement.

The new set of numbers are lower than the loss recorded by SoftBank in November last year.
It had booked an investment loss of JPY 58.14 billion ($560 million or roughly Rs. 3,472 crores) for the six-month period ending September 30, impacted by appreciation of Japan’s Yen against the local currency.

SoftBank had led a $210-million investment in Ola and $627 million in Snapdeal in October 2014. It made follow-on investments in both firms.

The Japanese firm has so far invested close to $2 billion in India and earlier this year it stated that it is looking to scale up investments to $10 billion in next 5-10 years.

Tags: SoftBank, SoftBank Earnings, SoftBank Investment, Ola, Snapdeal, India, Internet, Apps

[“Source-Gadgets”]

Angel Investments Since the Economic Downturn

In an earlier post, I discussed how venture capital deals have changed since the financial crisis and the Great Recession. Today, I want to point out some changes in angel deals and angel investments over the same period.

Because there is a lot less information on angel investing than on venture capital, I will concentrate on just four dimensions of angel finance:

  • The number of investors.
  • The amount invested annually.
  • The number of businesses funded each year.
  • The average size of the investments.

Number of Angel Investors

The number of angel investors isn’t appreciably different now from what it was before the Great Recession. The Center for Venture Research (CVR) at the University of New Hampshire estimates that there were 258,200 angel investors in the United States (PDF) in 2007 and 268,160 in 2012.

That’s a change of less than 4 percent.

Amount Angel Investments

The amount of financing provided by business angels has changed by much more, declining 20 percent inflation-adjusted terms from before the recession to last year. According to CVR’s estimates, angels invested $27.3 billion in 2007 versus $21.8 billion in 2012 (both measured in 2010 dollars).

Number of Companies Financed

In contrast to the amount of money provided to entrepreneurs, which is now lower than before the start of the Great Recession, the number of companies receiving financing is currently substantially higher. The CVR estimates a 17.3 percent increase in the number of companies funded by angels between 2007 and 2012 (from 57,120 to 67,030).

Angel Investment Size

The decline in the amount of capital provided by angel investors combined with the increase in the number of companies that business angels have financed has led a sizable drop in the size of average angel investments.

As the figure below shows, average angel investments were roughly one third lower last year than in 2007, when measured in real terms. Moreover, the relatively constant size of the average angel investment in the early part of the 2000s and again since 2008 suggests that the financial crisis and Great Recession has led angels to fundamentally alter the size of their investments.

Source: Created from data from the Center for Venture Research at the University of New Hampshire
Source: Created from data from the Center for Venture Research at the University of New Hampshire

In short, angels have responded to the changed economic environment, not by exiting the market, but by providing less money to more startups, thereby dramatically reducing the size of the average angel investment.

Business Angel Photo via Shutterstock

[“source-smallbiztrends”]

SoftBank’s Investments In India can also Surpass $10 Billion

SoftBank's Investments In India May Surpass $10 Billion

Tokyo: Having made a string of era investments in India, eastern telecom and internet massive SoftBank hassaid its investments within the united states will pinnacle $10 billion in five-10 years.

SoftBank, which owns one in all Japan’s largest mobile vendors and a controlling stake in US-based totally dash Corp, will make its first $350 million investment in a solar undertaking in India, its chief govtMasayoshi Son advised PTI right here.

we’ve already invested $2 billion and we’re interested by investing greater,” he said. “India has aexceptional destiny. we are interested by investing in net groups and additionally in sun electricity.we would make robust commitments.”

Mr Son said SoftBank is asking at accelerating the tempo of investments in destiny.

“We additionally made a primary move on solar energy. we are making $350 million investment in firsttask in sun (in India). we will extend. In subsequent five-10 years, we can clearly make likely round $10 billion of investments,” he introduced.

In June remaining 12 months, SoftBank introduced a joint undertaking with Bharti companies and Taiwan’s Foxconn generation organization to generate 20 gigawatts of renewable electricity. this willentail the 3 companions making an investment approximately $20 billion.

Mr Son said attaining the electricity technology goal would rely upon strength buy agreements being signed with offtaker states, adding that “we will aid it”.

SoftBank’s investments inside the past years include $627 million in on line-retailing market Snapdeal andleading a $210 million investment spherical in taxi-hailing app Ola Cabs.

It paid $2 hundred million for a 35 according to cent stake in InMobi, an Indian cellmarketing network.

SoftBank also has a JV with the Bharti organization, Bharti SoftBank, the investments of which include themobile application Hike Messenger. Its other investments cover real estate internet site Housing.com,hotelreserving app Oyo Rooms and Grofers.

Mr Son said India’s marketplace is poised for big increase, making it an essential destination for traders.

requested whether or not worries approximately excessive valuations might lead SoftBank to cut itsdeliberate investments in the u . s ., he stated, “we’re very very assured about India, so we will boomfunding. i am now not involved. i’m very very enthusiastic about the opportunity.”

Mr Son, who had previously expected that India’s e-commerce enterprise could grow to be a $500 billioncommercial enterprise inside the next 10 years, is confident that it’ll develop exponentially.

“And it will become like China and emerge as really worth loads of billions of bucks,” he said.

though India has lagged China on development of the net, SoftBank believes the usa will develop strongly over the following decade.

On consolidation inside the e-trade area, he stated, “We continually concept that whenever there’s anopportunity to win, i am positive there may be lots of co-operation.”

asked what he desires from the authorities on renewable power push, Son respond becomejust guideworldwide popular” for purchasing power generated and fed on.

“On making funding, there is global stand on the policies. as an example, if we make funding, then wewant price… there are global policies and standards and so long as India presents (that), we do notneed any advantage. so long as there’s parity with worldwide standards this is sufficient,” he stated.

SoftBank, Bharti and Foxconn plan to invest inside the joint task called SBG Cleantech.

India is concentrated on era of one hundred gigawatt of solar electricity by 2022, up from round 5gigawatt these days.

(This tale has no longer been edited by means of NDTV staff and is automobile-generated from a syndicated feed.)
story first posted on: can also 30, 2016 10:forty five (IST)

Tags: SoftBank, SoftBank’s India investments

Right time for angel investments, say experts

Angel investors should ideally help start-ups by leveraging their own domain expertise, guide them in customer acquisition and become quasi-entrepreneurs themselves and assist in scaling the business.

Angel investors should ideally help start-ups by leveraging their own domain expertise, guide them in customer acquisition and become quasi-entrepreneurs themselves and assist in scaling the business.

Bengaluru: Start-up funding may be slowing, but this is the right time to make angel investments, since companies being built now will mature when the market becomes favourable again, seasoned investors at a conference for angel investors said.

“When we used to do workshops, we would start the workshop saying, at the end of it, 50% of the people would not want to be angel investors, which is okay. So, the idea is not to grow the numbers, the idea is to get those who get angel investment to enable them to become investors and to make people understand that this is a high risk asset,” said Shanti Mohan, co-founder of LetsVenture, an online platform for start-ups and angel investors that organized the LetsIgnite conference.

India has about 4,000 start-ups, the third largest concentration of start-ups in the world, according to software industry body Nasscom. Many people who want to get a piece of this pie start with angel investments—small amounts for companies beginning to build their businesses. This capital is crucial for start-ups, but what’s also crucial is for the first-time investors to understand that angel investment is about more than putting in some money in a company.

According to Sharad Sharma, a well-known angel investor and Shekhar Kirani, partner at Accel Partners, who jointly conducted a workshop for angel investors at the event, if there is momentum in a specific sector, and if it is being billed as “hot”, then it is too late to invest in it.

“You have to be at least 18 months ahead of the market and think about what’s going to happen at that point,” said Kirani, who was an angel investor in Filpkart Ltd, before his venture capital firm itself invested in the company.

Angel investors should ideally help start-ups by leveraging their own domain expertise, guide them in customer acquisition and become quasi-entrepreneurs themselves and assist in scaling the business.

Both Sharma and Kirani advised first-time investors to start off as passive angel investors and learn from other experienced investors, then become co-leads on a couple of deals and only then become lead angel investors on a deal.

“It is very tempting to fast-forward this, because in India, there is an acute gap in the amount of capital that entrepreneurs want and in the amount of capital that is available, but self-knowledge for an investor is important to realise that it takes time to become an expert angel investor from a novice investor,” said Sharma, who is an angel investor in companies like Druva, Ezetap and Frrole, among others.

Sanat Rao, partner, IDG Ventures, said angel investment will continue despite the overall slowdown.

“While there may be an overall slowdown in the quantum of angel investment if the market itself slows down, angel investment will continue because people who did well at well-funded companies, founders and those below them, are investing themselves now, and all these guys get the best deal flow as entrepreneurs know each other. This is here to stay. It is not going to disappear tomorrow,” said Rao, who made seven angel investments before he became a venture capitalist.

[“source-Livemint”]