The popular Japan-based bank, Softbank Group Corp., claimed that it had recognized a hammering of almost $1.4 Billion linking to investments conducted by the Tokyo-headquartered investor in the not-in-a-good-condition e-commerce giant Snapdeal and ride-hailing platform, Ola.
Led by popular telecommunications giant Masayoshi Son, Softbank Group Corp. last week said it had witnessed a failure from fiscal instruments at ‘Fair Value through Profit or Loss’ of ¥160,419 Million in its combined fiscal statements for the financial year 2016–2017.
It signed off ¥114,059 Million as a particular loss in its non-combined fiscal statements for the financial year 2016–2017 that symbolized loss of its funds in associates and subsidiaries, counting that of Starfish I Pte Ltd.
Starfish I is a midway holding firm, which possesses favored shares in ANI Technologies, which handles Ola, and Jasper Infotech, which operates and possesses Snapdeal.
As per the Japanese telecommunications company, Snapdeal’s pathetic performance had resulted to a huge reduction in total value of assets of Starfish I Pte Ltd. for the financial year 2016–2017, and hence SBG prejudiced its shares’ carrying amount in the firm, to the sum equal to its total value of assets.”
The declaration arrives on the same day since the company claimed a 13% elevation in net income for the financial year 2016–2017, to ¥1.43 Trillion for the 12 months ending March 2017 that topped estimates of analyst, and was primarily driven by an improved performance and cost cuts by Sprint Corp., its wireless business based in the U.S.
The chief private investor in startup ecosystem of India, SoftBank, has forced in over $2 Billion till now and is currently arranging an acquisition meeting of Snapdeal to its rival firm in industry Flipkart for a projected $1 Billion. SoftBank has so far spent almost $900 Million in Snapdeal.
The newest update follows announcement by SoftBank in February 2017, when it said it had witnessed a $350 Million loss on its investments in the unlucky ecommerce giant Snapdeal and ride-hailing platform, Ola.
In a nut shell, as of now, SoftBank is all set to recover its loss from Snapdeal by Flipkart’s acquisition.