Narayan AmmachchiAfter spending billions of dollars on Latin American startups in recent years, Japanese industrial conglomerate SoftBank begun selling its stakes in the region.
Softbank sold its stake in at least five startups in which it had purchased stakes two years ago. All sales appear to have paid off handsomely for SoftBank.
In June this year, SoftBank sold its stake in Brazilian fintech Pismo to Visa Inc. for US$1 billion. This transaction alone doubled SoftBank’s initial investment in Pismo in just 18 months.
SoftBank also divested its shares in Avenue Holdings, a Brazilian investment platform, and Yadoo, a Mexican e-commerce company, for undisclosed amounts.
The sales of these three stakes are a sign that SoftBank is beginning to take profits from its investments in Latin America. The company has been a major investor in the region in recent years, pouring billions of dollars into startups across a variety of industries.
The hefty profits from stake sales could persuade the Japanese firm to invest more money in early-stage companies in the region, according to analysts.
Despite recent divestments, SoftBank still has a portfolio of more than 90 Latin American startups with a collective value of around US$6 billion, according to Reuters.
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