SoftBank’s Vision Fund posted a record $ 8 billion in profits in the third quarter as its bets on DoorDash and Uber paid off.
SoftBank Vision Fund said in the third quarter that its bet on Uber and food delivery service DoorDash paid off, making a record $ 8 billion in profits in the last three months of the year. Revenue was shown on Monday.
WeWork and Uber’s poor performance shook Japan’s technology fund of $ 100 billion, with profits skyrocketing to $ 7.99 billion, compared to a loss of about $ 2.13 billion in the year-ago quarter.
However, the stock market boom and initial public offering seen in 2020 helped SoftBank turn around its vision fund, which specializes in investing in fast-growing technology names.
Nevertheless, SoftBank recorded a loss of $ 2.7 billion in derivative transactions during this period, showing its earnings.
Overall, SoftBank’s third-quarter net income surged to $ 11.09 billion, boosted by Vision Fund’s record performance. SoftBank’s third quarter was three months until December 31st.
According to the company, the main Vision Fund and Vision Fund 2 recorded a return on investment of $ 25.85 billion (¥ 2.73 trillion) in the nine months to December 31st.
Much of the growth was due to the unrealized profits of the main Vision Fund, thanks to bets on DoorDash and Uber.
US food delivery service DoorDash went public in December, and SoftBank’s $ 680 million investment turned into about $ 10 billion worth of stock after its debut.
After spending a lot of money on the Vision Fund in 2019, the stake in the ride-hailing service app Uber began to pay off in 2020, with its share increasing by about 45% compared to last year.
In addition, the Main Vision Fund realized a profit of $ 1.98 billion (¥ 209 billion) in the nine months to December 31 by selling some or all of the shares of 11 portfolio companies. ..
Vision Fund 2’s profits were boosted by the successful initial public offering of Chinese housing platform KE Holdings and biotechnology company Seer.