Japanese tech investment giant SoftBank Group (TYO:9984) is expected to report a net loss of 26.9 billion yen ($184.4 million) for the January-March quarter, according to analyst estimates. This drop comes as early-stage startups lost investor interest and key portfolio companies reported growing losses.
The projected loss contrasts sharply with the 231 billion yen in net income SoftBank posted in the same quarter last year. The estimates are based on the average of five analysts surveyed by LSEG.
Some of the losses may be cushioned by a stronger yen and gains in the share prices of telecom holdings like T-Mobile, which rose more than 20% during the quarter, nearing a record high.
However, several portfolio companies underperformed. Indian firms Swiggy and Ola Electric saw their share prices plunge by about 40%. Both companies have struggled since going public amid fierce competition in their sectors—quick commerce and electric vehicles, respectively.
Nomura Securities analyst Daisaku Masuno expects around $900 million in total losses from publicly listed companies held by SoftBank’s Vision Fund.
Venture capital trends further impacted results. Investments favored large, established tech players, while funding for early-stage startups—like those in Vision Fund 2—dropped to a five-quarter low, according to Crunchbase.
Despite the downturn, SoftBank announced major spending plans, including a potential $20–$30 billion investment in OpenAI, the company behind ChatGPT. In March, it also acquired chip startup Ampere Computing for $6.5 billion.
Yet analysts remain cautious. They question whether these AI investments will deliver results anytime soon. “SoftBank has paid a steep price for ChatGPT, perhaps without fully understanding how so many AI chatbots can coexist and make money,” said Amir Anvarzadeh, a Japan equity strategist at Asymmetric Investors.
Market volatility is also weighing on the IPO pipeline. Several SoftBank-backed firms have delayed their public listings. Klarna, a Swedish fintech, and Oyo, an Indian hotel chain, postponed their IPOs after new U.S. tariffs were announced by President Donald Trump.
Still, not all is stalled. Paypay, a payments company owned by SoftBank, is moving forward with its IPO preparations, as revealed in the firm’s latest earnings report.
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