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IPO Boom Boosted SoftBank’s Profits, More To Come This Year

The Vision Fund, part of SoftBank, made a quarterly profit of $8 billion from consumer participation in the IPO and a rally in the financial markets.

In the fourth quarter of 2020, the Vision Fund, owned by the Japanese investment firm SoftBank, made a record profit of 844.1 billion yen ($8 billion), Bloomberg announced. Development in the capital markets helped the portfolio companies of the fund, including the DoorDash Inc. (DASH) food distribution service and the KE Holdings Inc. (BEKE) real estate trading site, reach the stock exchange. The equity boom has also increased the valuation of the fund’s portfolio portfolios, including the shares of the ride-hailing platform Uber Technologies Inc. (UBER).

The fund’s earnings beat the previous record high in the third quarter, with a profit of 784.4 billion yen announced by the Vision Fund.

It is notable that the fund received a quarterly loss of 223.6 billion yen between October and December 2020.

At various stages of the start-growth, up’s the fund invested four times in the DoorDash operation. The third biggest IPO in the United States in 2020 was the sale of DoorDash shares on the stock exchange. The distribution service received $3.37 billion during the initial public offering, and the value of the firm increased to $68 billion.

In total, the Vision Fund has made more than 80 investments in diverse projects over the past three years. The fund, for example, invested in the Chinese company ByteDance, which is the owner of the TikTok video service, as well as the Chinese taxi service Didi and the Indian fintech company Paytm.

The Vision Fund invests in emerging technology, robots, and artificial intelligence. At least six Vision Fund portfolio companies are preparing an IPO in 2021, according to Bloomberg. South Korean internet retailer Coupang, Indonesian online shop operator Tokopedia and China’s taxi aggregator Didi are among the startups planning for an initial public offering.

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