Oyo uncertainty and Paytm pain can’t slow SoftBank’s Indian gravy train

Despite being SoftBank’s third largest market, India doesn’t enjoy the attention it deserves on the Japanese venture capital giant’s earning calls. But with two of SoftBank’s biggest Indian bets—Paytm and Oyo—currently swimming against the tide, the VC giant’s India portfolio was bound to come under scrutiny.

Oyo, in which SoftBank has invested over Rs 10,000 ($1.24 billion) crore for a 45% stake, has failed to go public despite publishing its draft prospectus some two and a half years ago. Instead, despite repeatedly inching towards a public listing, Oyo is reportedly raising another private funding round instead, extending SoftBank’s wait to finally monetise its second-largest Indian investment.

Meanwhile, Paytm, SoftBank's largest investment in India, is arguably in worse shape. While the fintech unicorn went public in November 2021, it has seen the value of its stock plummet by nearly 60% in the past month due to a crackdown by India’s central bank, the Reserve Bank of India. This leaves SoftBank, which still holds an almost 6.5% stake in Paytm, facing potential losses.