On Thursday, SoftBank gained $33 billion when Coupang’s public debut saw a spike of 81% in its share value. Coupang is the largest e-commerce company in South Korea, whereas Softbank invested $3 billion in Coupang in 2018. Softbank Vision Fund value jumped to $100 billion with this latest development.
SoftBank Earns Huge Profit in Recent Months
Coupang created history in the US stock market with a $4.6 billion funding raise. Coupang shares saw a jump of 81%. It is one of the monster public debut in 2021.
As per the old funding record reports, SoftBank invested $3 billion to get a 37% stake in Coupang. THE current IPO debut of Coupang makes $33 billion profit for SoftBank.
Coupang’s successful IPO brought a sigh of relief for SoftBank who is struggling with big losses. The Japanese investor lost billions of dollars when Greensill Capital collapsed. Greensill is a supply chain startup from the UK, whereas Vision Fund is the main investor in it. SoftBank invests in startups and other firms through its Vision Fund Capital operations.
In February 2021, Softbank recorded 20 times more net profit in the third quarter of FY2020-21. Vision Fund saw a record recovery in the last few months it is famous for early investment in worldwide startups. The company is known for its huge investment in Uber and other tech firms.
How SoftBank is Recovering from Pandemic?
In 2020, Japanese Investor SoftBank was struggling due to the flopped IPO and Market Cap downfall of WeWork firm. People started questioning Masayoshi Son’s judgment. Experts were believing that Masayoshi should bring a new boss to handle SoftBank operations.
The COVID-19 affected SoftBank so badly that Son sold few assets of its company. At the same time, his new investments showed a ray of hope for SoftBank.
SoftBank started in 2021 with the largest investment of $225 million in Forward Health, a healthcare startup. The company started more investment in the second half of 2020 due to lockdown ease worldwide. The company also earned $11 billion due to a whopping share surge in DoorDash Inc in December 2020. DoorDash is an online food delivery platform with a market cap of $70 billion.
SoftBank also made gains through Opendoor Technologies IPO in December 2020. Vision Funds has large stakes in Didi, an online ride firm in China. It also has a significant stake in Grab, an online ride provider in SouthEast Asia, and is also considered the main rival of Uber.
SoftBank has also started acquiring companies through a blank check firm concept but did not find any takers yet in this area. When contacted, SoftBank did not comment about anything related to the current developments of the investing firm.
