 "Image via Tech in Asia")
Some SoftBank investors had questioned Nikesh Arora's track record and investments in India, especially in companies like Housing.com. What happened was a result of some irrational exuberance from investors in Indian start-ups.
China and the US saw a boom in e-commerce. As penetration of mobile grew in China, many Chinese e-commerce companies listed at huge valuations. Investors feel the same story would repeat in India, and bet on emerging start-ups.
There was fear of missing out among investors as they raced to invest in start-ups and drove valuations. SoftBank, which was a relatively late entrant in India, took aggressive bets in India, investing in five start-ups and seven rounds within a year.
A month after Arora came on board, SoftBank announced two big investments in India: $210 million in taxi app Ola and $627 million in e-commerce biggie Snapdeal, according to a report in TechinAsia. It also bet $100 million on Indian real estate start-up Housing, an investment investors have questioned.
Housing, November 2014
SoftBank invested $100-million in real estate portal Housing.com. It's Chief Executive Rahul Yadav was asked to step down after a run-in with investors. It saw big layoffs as it tried to shed costs. SoftBank again invested $14.7 million in January 2016.
Ola, April 2015
SoftBank led a $400-million Series-E fund-raising by taxi aggregator Ola, which also saw investments by DST Global, Tiger Global, Steadview Capital, Accel, ABG Capital, Mauritius Investments, Falcon Edge Capital and GIC.
Snapdeal, August 2015
SoftBank led a $500-million fund-raising round by e-commerce major Snapdeal, which also saw investments by Alibaba, Foxconn, Blackrock, Myraid, Temasek. As Amazon steps up its presence in India, others e-com sites are feeling the pressure.
OYO Rooms, August 2015
SoftBank led a $100-million fund-raising by realty portal Housing.com, which also saw investments by Alibaba, Foxconn, Blackrock, Myraid, Temasek. In April 2016, OYO again raised $100 million from SoftBank, Greenoaks, Sequoia & Lightspeed.
Grofers, November 2015
SoftBank led a $120-million Series-C fund-raising by e-grocer Grofers, which also saw investments by Tiger Global Management and Sequoia Capital. Since then, Grofers has shut operations in nine cities and rival PepperTap has shut shop.
