The Japanese investment fund has rejigged its India strategy after deploying nearly $14 billion since cutting its first cheque a decade ago
Every economic cycle will have summers and winters, but we are not seasonal investors. We stand behind founders who are executing their bold visions.: Munish Varma, Managing partner, SoftBank Investment Advisers India
Image: Jake Chessum
Until the lockdown hit in March 2020, like most firms, SoftBank India’s team used to meet once a week on a Monday meeting. But things changed as everyone started adapting to working from home. The 12-member team now met online twice a week as it had become all the more important to assess the impact of the lockdown on the portfolio firms, some of which had to halt operations abruptly. These included ride-hailing service provider Ola, hotel aggregator Oyo Rooms, omnichannel eyeware brand Lenskart and logistics firm Delhivery.
“When the pandemic struck, we wanted to understand the new status quo. While we were still under lockdown, China was theoretically coming out of it, so what were the lessons that we could take from them?” explains Sumer Juneja, partner and head of investing in India at SoftBank India Investment Advisors over a Zoom call from his office in Worli, Mumbai.
In April, the team decided that it should do a knowledge-sharing session of portfolio companies across these two countries. By mid-May, SoftBank had lined up a meeting with the top brass of Delhivery, PolicyBazaar and FirstCry, among others, and its China portfolio companies in similar businesses, like ZhongAn Online P&C Insurance and Full Truck Alliance Co.
SoftBank, and its India portfolio firms, spotted a few trends early that may seem obvious today, courtesy of such meetups: Revenge shopping, the faster adoption of online tuition classes and the increase in sales premiums in life and term insurance policies. There were other learnings, too. Full Truck’s founder explained how Delhivery should now manage logistics because unlike other companies, logistics can’t shut down half its capacity without disrupting the entire value chain; either all parcels reach from one pin code to the other or the entire batch of shipment gets halted. (Full Truck Alliance, an Uber-like trucking startup, went public this June by raising $1.6 billion in the US.)
(This story appears in the 13 August, 2021 issue of Forbes India. To visit our Archives, click here.)