Softbank Exits Paytm at a Loss of Around $150 Million at the End of the June Quarter
Image Credits: The Indian Express
Japan’s Softbank investment arm, Softbank Vision Fund, offloaded its remaining 1.4% stake in Paytm and exited the fintech major at the end of the June quarter. It suffered a loss of $150 million, according to the news agency PTI.
Softbank has been offloading the shares regularly since November 2022, and its stake in Paytm was brought down to 1.4% as of March 2024, which was around an 18.5 percent stake at the time of Paytm’s IPO in 2021. The bank held a 17.3 percent stake through SVF India Holdings (Cayman) Ltd and 1.2 percent through SVF Panther (Cayman) Ltd. SVF Panther sold its entire stake during the IPO for ₹1,689 crore, about $225 million.
Meanwhile, Softbank invested around $1.5 billion in One97 Communications, the owner of the Paytm brand, in tranches in 2017. It exited Paytm at a loss of 10-12%, which is around $150 million, according to sources.
The exit of Softbank from Paytm was as per the time fixed by them, as they had announced that they would exit Paytm within 24 months after the IPO. In the past, billionaire Warren Buffett’s Berkshire Hathaway Inc. also exited Paytm around seven months back by selling shares at a lower-than-acquired price.
In November 2023, Berkshire Hathaway sold its residual 2.46 percent stake in Paytm (it had sold some stake during the company’s IPO in 2021) for ₹1,371 crore to Ghisallo Master Fund and Copthall Mauritius Investment. Ghisallo purchased 4,275,000 shares, and Copthall purchased 7,575,529 shares.
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