- Tram Ho
Softbank’s Vision Fund has suffered a lot in the past year, but for now, they may be about to receive good news. DoorDash – the food delivery company that the fund once poured capital into is about to bring them a huge profit.
Specifically, Vision Fund has invested 4 times in DoorDash, pouring a total of 680 million USD into the company through Series D, F, G and H. Funding rounds. A dollar per share, Vision Fund’s investment is now worth $ 11.5 billion – that’s 17 times higher.
Rajeev Misra, President of Softbank Vision Fund, told CNBC in March that the fund will show significant improvements over the next 18 to 24 months after more than 12 companies in their portfolio go public. The fund has also made more than 80 investments in the past three years and is planning to reap a lot of returns on paper as these companies include ByteDance, which owns TikTok and Paytm IPO.
Softbank said in November that the Vision Fund made a profit of $ 6.1 billion in the quarter ended September 30, compared with a loss of $ 17 billion earlier this year. Softbank valued the Vision Fund at $ 76.4 billion at its earnings call, which equates to $ 75 billion. Vision Fund gave 83 of its investments.
The $ 280 million investment in Series D valued DoorDash at $ 5.5 per share. However, based on the prices on Wednesday’s session, this number increased by 32 times.
This is very good news for Softbank in general and the billionaire himself “eating a lot” Masayoshi Son in particular.
Alibaba is Son’s most successful investment to date and also the company’s most valuable asset at the moment. In early 2000, Son invested $ 20 million in a little-known Chinese web portal connecting to overseas buyers, and now the stake is worth $ 150 billion. That earned him a reputation as a brilliant investor and subsequently helped him create a $ 100 billion Vision Fund.
However, since its inception, Vision Fund has continuously received many bad news about failed investments such as in WeWork, Uber. Many people even questioned Masayoshi Son’s ability to invest. At its peak earlier this year, Softbank recorded a record 1.35 trillion yen ($ 12.5 billion) operating loss in the fiscal year ending March 31. The Vision Fund alone saw a loss of 1.8 trillion yen ($ 16.84 billion). These numbers made investors really concerned, as a result, Softbank’s shares plunged unceasingly.
However, since that slump, Softbank has gradually regained its form. If the DoorDash IPO goes well, Softbank’s profitable investment here will regain some of the reputation for billionaire Masayoshi Son.
Source : Genk