Softbank incurs investment loss in Ola and Snapdeal
Company had USD 210-million investment in Ola and USD 627 million in Snapdeal in October 2014.
New Delhi: Japan's SoftBank Corp has booked an investment loss of 39.28 billion yen (USD 350 million) on its investments in India, including those in cab-hailing firm Ola and e-commerce company Snapdeal.
In the earning statement for nine months ended December, SoftBank wrote off 39.28 billion yen in the value of shares in its Indian investments, which include Ola and Snapdeal.
"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.
The new set of numbers are lower than the loss recorded by SoftBank in November last year. It had booked an investment loss of 58.14 billion yen (USD 560 million) for the six-month period ending September 30, impacted by appreciation of Japan's Yen against the local currency.
SoftBank had led a USD 210-million investment in Ola and USD 627 million in Snapdeal in October 2014. It made follow-on investments in both firms. The Japanese firm has so far invested close to USD 2 billion in India and earlier this year it stated that it is looking to scale up investments to USD 10 billion in next 5-10 years.