SoftBank Vision Fund, based out of Japan, has planned to invest $2-4 billion in India over the next two years. The investment will be done in financial services sector as it changes its usual preference of infusing funds in internet and tech-driven businesses in the country.
The development has come at a time when the potential investor company is already raising money for a new fund of similar size.
“We should be able to pump $2-4 billion in India, which would be through new investments. We will also make follow-on investments aside of fresh ones when our portfolio firms require capital,” said Rajeev Misra, director and executive vice-president at SoftBank Group Corp and head of SVF.
He also added that Softbank would be bringing over 20 companies in its portfolio into India by setting up joint ventures with local businesses.
Importantly, SoftBank Founder Masayoshi Sen announced at the company’s annual general meeting in Tokyo last month that they were already in talks with sponsors and limited partners for the new fund.
Japan-based Soft Bank Group, is known for its leadership by founder Masayoshi Son. It, now, owns operations in broadband, fixed-line telecommunications, e-commerce, internet, technology services, finance, media and marketing, semiconductor design, and other businesses.
Misra further said that the financial sector with its heavy reliance on modern technology has emerged as an attractive ambit in India.
“Financial services is broken in India, and it can be the biggest multiplier of growth. This is a great opportunity that we would look at here. This is a no risk strategy. All they (potential JV partners) need to do is provide management, staffing, handle the regulatory issues and customise to the Indian market. These products have no competitors here. This is equally an opportunity to create jobs here,” he added.
SoftBank’s other key investments in India include Ola, Hike, Paytm, FirstCry, Grofers, Delhivery, and Paytm Mall.
Earlier this month, SoftBank was said to be in talks to launch an initial public offering of its $100 billion SoftBank Vision Fund.