SoftBank is one of the topmost investment companies in the entire World which has invested in a lot of big projects. These big projects include Uber, Slack, ARM, and NVIDIA and more.
Apart from these, SoftBank has also invested in less popular companies such as OneWeb, which is a satellite internet company. The bank also invested in Paytm, which is an Indian company and a farming company called Plenty.
SoftBank also initiated Vision Fund which aimed at investing in a bunch of startups but it was not successful. The bank informed on Monday that it might report a loss in operating income.
This is the first time it has ever happened in 15 years and the reason behind it is SoftBank’s investments in some tech startups. SoftBank is a Japanese company that claims that it might report a 1.35 trillion worth of loss in operating income.
This occurred in the year 2020 and if compared to the 2 trillion yen worth of profit last year, it’s alarming. The company claims that its losses have occurred due to investments in its huge tech fund namely Vision Fund.
It has been reported that The Vision Fund has suffered 1.8 trillion yen worth of losses only because of the market. They claimed that the market’s environment deteriorated and that caused huge losses.
This deterioration in the market has been due to the coronavirus pandemic as investors are uncertain. The uncertainty causes a market to experience downfall, which is eventually not good for any business or bank.
Apart from this, bankruptcy of an internet satellite business called OneWeb and financial losses of WeWork are important mentions as well.