Softbank Lost $475 million in Ola, Snapdeal
Japan’s Softbank Corp, invested in two Indian companies now has a loss of 39.28 billion yen (Rs 2345 crore). These two companies are Ola and Snapdeal. Ola provides cabs while Snapdeal is the well-known e-commerce company.
Based on the report of the nine-month earnings Softbank said in a statement that they had reduced the price of shares for the investment of 39.28 billion yen made in India. The company said these investments are made in Ola and Snapdeal. “Loss recorded as the amount of change in the fair value of the company’s investments, primarily in India, from the previous fiscal year end to the end of the third quarter. Of this, a gain of ¥16,133 million was due to foreign exchange rate fluctuation,” the company stated in its latest earnings report.
However, SoftBank had the bigger loss in November last year. Softbank 560 million dollars (Rs 3752 crore) investment was lost in the six months ended September 30. The loss was also affected due to the gains of the local currency against the Japanese yen. Softbank in October 2014 invested $ 210 million in the Ola (Rs 1407 crore) and 627 million (Rs 4202 crore) in Snapdeal.
This Japanese company has invested nearly $ 2 billion in India (about 13 thousand crores). The company said earlier this year that the amount of investment in India in the next 5 to 10 years would be increased to 10 billion dollars (about Rs 67).