03:53 GMT +321 August 2019
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    People walk past a retail shop of the SoftBank telecommunications company in Tokyo, Japan

    Japanese SoftBank Loses $350 Million on Investments in Indian E-commerce Firms

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    SoftBank has been making loss on its Indian investment since beginning but company has expressed its faith into the potential of Indian e-commerce companies.

    New Delhi (Sputnik) — Despite making loss on its Indian investment, Japanese telecom giant Softbank has said that company will remain committed to its portfolio in India. Japanese telecom giant Softbank has lost $1.3 million per day in last nine months on Indian investment.

    “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 for nine months ended December 2016. Company has written off 39.28 billion yen in the value of shares in its Indian investments, which include Ola and Snapdeal.

    In year 2014, Softbank had announced $10 billion investment in Indian e-commerce companies by 2024. A total of $2 billion worth of investments has been pumped into different Indian companies since then. Softbank had begun investment in Indian e-commerce companies in 2014. Softbank had invested $697 million in Snapdeal and $210 million in Ola. Company has been reporting loss on the investments since beginning. Apart from these investments, SoftBank has been making loss in on-demand grocery delivery app Grofers, budget hotel aggregator OYO Rooms and real-estate search portal Housing.com as well.

    Softbank has also expressed interest in providing funds for one million electric vehicles to Indian drivers who will be part of Ola.

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    telecom, banking, investment, Softbank, Japan, India
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