Japanese conglomerate SoftBank Group today said it has recorded loss from investments to the tune of $1.4 billion, or over Rs 9,000 crore, for 2016-17 in Indian startups like Snapdeal and Ola. SoftBank Group Corp registered loss from financial instruments at FVTPL (fair value through profit or loss) of Japanese yen 160,419 million in consolidated financial statements for the fiscal year ended March 2017, SoftBank said in a statement.
The financial instruments at FVTPL include preferred shares of Jasper Infotech (Snapdeal) and ANI Technologies (Ola), it added. SoftBank has also written off over $1 billion on valuation of its investment in Snapdeal. "This (SBG's loss at FVTPL) mainly resulted from recording a loss as the amount of changes in the fair value of the financial instruments at FVTPL from March 31, 2016 to March 31, 2017," SoftBank said.
The Japanese firm has multi-billion investments in Indian firms, including Ola, Snapdeal and Elara Technologies, which owns PropTiger, Housing and Makaan.com. The group is believed to have moved a step closer to securing the consent of co-investor Nexus Venture Partners (NVP) for selling Snapdeal to India’s largest e-commerce firm Flipkart.
A meeting was held on Tuesday and the impasse over the sale could end soon, people familiar with the matter said. SoftBank - the largest shareholder in Snapdeal - has been making all efforts to get NVP on board for the sale of Snapdeal, and a breakthrough could come as early as this week.
Published Date: May 11, 2017 09:19 am | Updated Date: May 11, 2017 09:19 am