SoftBank, refraining from recent startup funding activities in India, is preparing to sell stakes in IPO-bound firms like Ola Electric and FirstCry. While retaining shares worth $1.1-1.2 billion in its listed portfolio companies within the country, the Japanese investor has divested approximately $1.8-1.9 billion through public offerings and post-listing sales in four Indian startups Paytm, Zomato, PB Fintech, and Delhivery. These startups went public between 2021 and 2022, accounting for a portion of the total $2.3-2.4 billion initially invested in these ventures by SoftBank.

SoftBank's strategy of reducing its holdings through secondary sales while abstaining from fresh investments mirrors the approach adopted by numerous growth and late-stage investors amid a slowdown in investment activities spanning the past 15-18 months. The conglomerate, which has provided support to approximately one-fifth of India's 100+ unicorns (startups valued above $1 billion), has injected $15 billion into the Indian market. Within this investment, SoftBank Vision Fund contributed $11 billion, while the remaining $4 billion was directed toward sectors such as renewable energy and infrastructure.

SoftBank maintains significant stakes in Ola Electric and FirstCry, estimated to be valued at around $1.4-1.6 billion and $840-850 million post their respective IPOs. The investor aims to offload approximately $45-50 million in Ola Electric (representing a 0.65% stake) and roughly $180 million in FirstCry (approximately a 4.5% stake) following their public offerings. However, SoftBank's investment trajectory with Paytm has faced challenges, witnessing the company's stock trading nearly 70% lower than its IPO price. Despite realizing returns of $800-900 million from its initial $1.6 billion investment in Paytm, SoftBank still retains shares valued at $550 million based on the current stock price.