SoftBank’s strategic realignment in India indicates a shift in focus rather than a withdrawal from the market. While the global investment firm is carrying out partial and complete exits from various Indian startups, it is concurrently developing a fresh pipeline of investments. The areas of artificial intelligence, cloud infrastructure, and enterprise technology are becoming the main focus for SoftBank. This transition is also evident in the latest investment trends. Data from multiple sources illustrate that SoftBank did not initiate any new investments in 2025 but participated in a follow-up funding round, helping portfolio company Juspay raise $60 million during its Series D round in April 2025. The Japanese firm has also remained predominantly inactive in 2023 and 2024. Previously regarded as a prolific unicorn creator alongside Tiger Global, SoftBank invested in 14 startups in 2021, whereas it supported only five in 2022. According to media reports, SoftBank’s cumulative investments in approximately 20 Indian companies exceed $10.6 billion. Notable companies in this portfolio include Flipkart, Oyo, OfBusiness, Eruditus, Icertis, Whatfix, Mindtickle, ElasticRun, Unacademy, and GlobalBees.
Highlights
AI as a Central Theme in Future Investments
SoftBank is currently engaged in discussions to invest in several AI-focused startups in India. The firm is considering involvement in Emergent’s $60 million funding round, a platform for artificial intelligence that is backed by Khosla Ventures. Additionally, SoftBank is also exploring potential investment opportunities in Neysa, a startup specialising in AI cloud infrastructure, together with Blackstone. These forthcoming investments highlight a distinct preference for enterprise-oriented platforms with robust scalability and reliable revenue models.
Ongoing Exits but SoftBank Challenges the Narrative
SoftBank has realised several gains from its Indian investments in 2025 through a combination of founder buybacks, secondary sales, and IPO offer-for-sale transactions. These transactions include exits or reductions in stake in firms like InMobi, Lenskart, and Ola Electric. The company partially divested from InMobi through a founder-led buyback, decreased its stake in Lenskart via IPOs and post-IPO sales, and lowered its ownership in Ola Electric. Previously, it also divested from Delhivery and FirstCry. However, the firm has contested the view that these activities signify a retreat from the Indian market.
SoftBank’s head in India, Sumer Juneja, expressed to Moneycontrol that the firm is competing with IPOs for capital allocation, a scenario he considers beneficial for the ecosystem. He affirmed that SoftBank is not in exit mode and intends to stay active in India, asserting a robust pipeline and confidence in future capital deployments. Since January 2021, SoftBank has supported around 10 out of nearly 50 new-age startups that have gone public. Looking forward, notable portfolio companies like Flipkart and OYO are among those expected to pursue IPOs in 2026.
Monetisation of Portfolio While Preparing for Future Listings
As it gears up for new listings, SoftBank has monetised a significant portion of its investments in India in recent years. According to reports by Mint, the investor has achieved over $7.2 billion through exits in India, which includes sell-offs in the public markets for companies such as Paytm, Policybazaar, and Zomato. The listed portfolio also features FirstCry, Delhivery, and Swiggy.
Capital Discipline and Shifts in Investment Strategies
SoftBank’s investment strategy in India reflects its larger global shift towards capital discipline. As noted by Startup Superb, SoftBank returned to profitability in FY25, reporting a profit of $7.4 billion, propelled by stricter controls and renewed interests in AI and semiconductor sectors.
Industry reports also suggest that SoftBank is open to more flexible cheque sizes in the future, including smaller initial investments, particularly in companies driven by AI. This adjustment signifies a departure from its previous inclination towards large late-stage rounds and mirrors the evolving market conditions and valuation expectations.
Deep Tech Funds Expand Ecosystem Landscape
In 2025, India witnessed new deep-tech funds focusing on artificial intelligence and advanced technologies. Yali Capital successfully closed a Rs 893 crore ($104 million) deep-tech fund in July 2025, while IIT Bombay’s SINE incubator launched a Rs 250 crore ($30 million) early-stage fund in December 2025. Additionally, government-led policies and funding programmes continued to thrive during this period.
While it’s challenging to evaluate an investor like SoftBank based on data from just a year or two, considering that sub-$10 million rounds may not hold significant weight, it seems likely that the firm might alter its stance when it finds the right conditions. SoftBank has a history of authorising multi-hundred million dollar cheques and will likely do so again when there is adequate potential in a firm to enable substantial scale. Returns from India continue to grow, and the residual value of its investments is not far from turning into a success story for SoftBank, potentially just a small bull market away. As previously mentioned, aside from IPOs, the firm could face competition from large Indian conglomerates diversifying into newer segments, supported by their ability to raise funds, influence policies, and build robust teams, particularly in sectors like Healthcare, green energy, and data centres. AI is still in the early stages of determining how Indian talent can provide value and impact, and as the landscape becomes clearer, it would not be surprising to see firms like SoftBank equipped with substantial funds. This could occur by the end of the year, or possibly by 2027, but there is a strong belief that Indian entrepreneurs will not take much longer to find their stride.
