SoftBank Group Corp has written down its investments in India, mainly Ola Cabs and Snapdeal, by around $555 million (Rs 3,702 crore approximately), mint reported. In its six monthly report, the Japanese telecom giant said that it had suffered losses from financial instruments during the current financial year till September 2016. The company said the loss of because of changes in fair value of preferred stock of its financial assets, including Ola Cabs and Snapdeal.
The company said it had made profits of ¥112.6 billion ($1 billion or Rs 6,671 crore approximately) during the corresponding period last year. “Gain or loss arising from financial instruments at FVTPL [fair value through profit or loss] comprises mainly changes in fair value of preferred stock investment including embedded derivatives, such as ANI Technologies Pvt. Ltd [Ola Cabs] and Jasper Infotech Private Limited [Snapdeal] in India, designated as financial assets at FVTPL,” the company said. SoftBank on Monday announced a profit of $5.1 billion (Rs 34,019 crore approximately) for the second quarter of the financial year.
This comes at a time when the cab hailing service is looking to raise funds from new and existing investors. While Ola is looking to raise $300-400 million, online marketplace Snapdeal is struggling to survive against competitors Amazon and Flipkart.
The Japanese company has major investments all over the world, including in India. In the past two years, it has invested $627 million (Rs 4,181 crore approximately) in Snapdeal and $210 million (Rs 1,401 crore approximately) in Ola Cabs. Its other investments in the country include start-ups such as OYO Rooms, Housing.com and Grofers.
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