SoftBank Posts $3.5 Billion Q4 Profit; Swiggy, Ola Markdowns Dent India Portfolio

SoftBank Group Rebounds with $3.5 Billion Q4 Profit Led by Global Tech Giants

Japan’s SoftBank Group Corp. reported a net profit of $3.5 billion (¥546 billion) for the January–March 2025 quarter, marking a sharp turnaround from the losses recorded in the previous quarter. The rebound was primarily fuelled by investment gains in global tech majors such as Alibaba, T-Mobile, and Deutsche Telekom, which significantly boosted the group’s consolidated earnings during the period.

The results reflect the company’s gradual recovery under CEO Masayoshi Son’s ongoing strategy to stabilise its sprawling investment portfolio after a string of volatile quarters over the past two years. The Q4 profit is a notable milestone as SoftBank attempts to rebalance its tech-heavy investment strategy amid a complex global macroeconomic environment.

Highlights:

• Q4 net profit of $3.5 billion marks reversal from previous losses

• Gains from investments in Alibaba, T-Mobile, and Deutsche Telekom provided significant uplift

• Group-wide profitability contrasts with ongoing struggles in certain investment segments

Vision Fund Segment Delivers Mixed Performance with Vision Fund 1 Outshining Vision Fund 2

The Vision Funds division—SoftBank’s cornerstone investment vehicle—delivered a mixed performance in FY25. Vision Fund 1 (SVF1) contributed positively, clocking an investment gain of $6.1 billion (¥940.5 billion) for the full fiscal year, buoyed by a rise in valuations of firms like ByteDance and Coupang. These legacy investments have continued to recover amid stabilising tech valuations and selective liquidity events.

In contrast, Vision Fund 2 (SVF2) posted a $3.4 billion (¥526.5 billion) loss for the fiscal year, with its portfolio hit by markdowns in both listed and unlisted holdings, including Swiggy, Ola Electric, AutoStore, and Symbotic. SVF2’s portfolio valuation dropped 2.7 percent quarter-on-quarter in Q4 alone, with the value of public holdings declining a sharp 21.7 percent over the same period.

SoftBank attributed the deterioration to a revaluation of private tech firms based on publicly listed comparables, particularly in sectors like food delivery and electric mobility, where investor sentiment remains tepid amid profitability concerns.

Highlights:

• Vision Fund 1 posts full-year gain of $6.1 billion, led by ByteDance and Coupang

• Vision Fund 2 suffers $3.4 billion loss, dragged down by markdowns in Swiggy, Ola, and AutoStore

• SVF2 public holdings value fell 21.7% QoQ in Q4, reflecting sector-wide pressures

India Exposure Weakens Vision Fund 2 Amid Valuation Cuts in Swiggy, Ola

Despite a globally strong quarter, SoftBank’s India portfolio continued to weigh down its investment performance, particularly within SVF2. Key Indian bets such as Swiggy and Ola Electric saw sharp valuation markdowns in the quarter ended March 2025. These companies, which are still private, were revalued using sector comparables that have been under significant pressure due to macroeconomic headwinds, thinning margins, and increased regulatory scrutiny.

SoftBank reported that the decline in these Indian assets was a key factor in the 2.7 percent drop in fair value across SVF2’s holdings during Q4. The markdowns indicate waning investor optimism over near-term profitability prospects in India’s fast-moving consumer tech space, despite long-term structural growth potential.

Swiggy, which is still preparing for a delayed IPO, continues to face challenges from rivals such as Zomato and Zepto, while Ola Electric, which had earlier filed its DRHP, has not moved forward with listing plans amid tepid market interest.

Highlights:

• Swiggy and Ola valuations marked down significantly in Q4

• India exposure identified as a key drag on Vision Fund 2’s overall value

• Valuation cuts driven by peer-based re-pricing and IPO market uncertainty