SoftBank recognises $1.4 bn losses from India investments in 2016-17

Inc Stock Will This $5 Billion Bet Pay Off

Japan's SoftBank Invading India's Online Space

Snapdeal was valued at United States dollars 6.5 billion in its last funding round in February 2016.

SoftBank is now negotiating a sale of Snapdeal to India's largest online retailer Flipkart valuing it at $1 billion.

The potential merger between Indian e-commerce companies Flipkart and Snapdeal continues to hang in the balance with a crucial board meeting of Snapdeal ending inconclusively.

The Japanese company, which was an early investor in Alibaba, reportedly views India as a country where the next one or two Alibabas will come from. The group is believed to have moved a step closer to securing the consent of co-investor Nexus Venture Partners (NVP) for selling Snapdeal to India's largest e-commerce firm Flipkart. But things may change now, said analysts. Both firms, run by Jasper Infotech and ANI Technologies respectively, are among SoftBank's largest investments in India. The sale reported by FactorDaily comes with a valuation of $950 million, which will force many Snapdeal investors to take a haircut.

SoftBank has been orchestrating the sale of Snapdeal to rival Flipkart over the past few weeks. According to the filings with the registrar of companies (RoC), Snapdeal had Rs 1,072.2 crore as cash and bank balances as on March 31, 2016.

The final approval seems to have been put in place for the biggest acquisition in Indian ecommerce, with Nexus Venture Partners (NVP) agreeing for the sale of Snapdeal to homegrown ecommerce behemoth Flipkart. The deal would include SoftBank spending as much as $1.5 billion to buy a double-digit stake held by U.S. investor Tiger Global in Flipkart.

"SBG recorded loss from financial instruments of 160,419 million Japanese Yen ($1.4 billion) in its consolidated financial statements for the fiscal year ended March 2017". SoftBank had written down $555 million (approximately Rs 3,692 crore) in Jasper Infotech and ANI Technologies - the two parent companies of Snapdeal and Ola, respectively - for the six months that ended in September 30 a year ago, reported Moneycontrol. Ola raised another $100 million from Ratan Tata's UC RNT Fund and Falcon Edge which saw its valuation inch up to $3.5 billion. The losses compare with a gain of $1 billion (¥114.377 billion) in 2015-2016.

Ola, the other bet of SoftBank, is also facing pressure as its US-based rival Uber has accelerated investments to grow the number of drivers and riders on its cab aggregating platform.

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