SoftBank Goes Beyond Start-Ups in India, Eyes Buyouts in AI-Led BPO Operations

After backing a series of Indian start-ups, SoftBank is now looking to deepen its presence in India by scouting buyout opportunities, specifically targeting the AI-led IT and BPO operations. This has signalled a shift in its role – from being a traditional growth and late-stage tech investor to becoming a direct buyer of companies.

As per The Economic Times report, the Masayoshi Son-led Japanese investment company had entered discussions to acquire BPO firm AGS Health in a deal estimated at $1 billion. However, the talks fell through, with global investment giant Blackstone eventually emerging as the frontrunner, the report said.

In addition, SoftBank also held talks with other outsourcing players like WNS Global as it explores ways to integrate artificial intelligence with large-scale service delivery – either through acquisitions or strategic alliances, it added.

It is pertinent to note that SoftBank is eager to accelerate AI adoption in India’s outsourcing industry as the country currently lacks homegrown foundational AI models like OpenAI or Anthropic.

SoftBank's Financials

SoftBank Group reported a net profit of ¥517 bn (approximately $3.5 bn) in the fiscal Q4 (January–March 2025). This marked a significant increase from the ¥231 bn profit recorded in the same quarter the previous year. The result defied expectations, as Reuters reported five analyst estimates compiled by LSEG had forecast a ¥26.9 bn net loss.

The profits were driven by robust performance in SoftBank’s telecommunications holdings, particularly T-Mobile US, and a ¥940 bn ($6.1 bn) gain at Vision Fund 1.

On the other hand, Vision Fund 2 recorded a ¥526 bn loss for FY25. The SoftBank Vision Fund, founded in 2017, is a venture-capital fund managed by SoftBank Investment Advisers, a subsidiary of SoftBank Group. With over $100 bn in capital, it is the world’s largest technology-focused investment fund.

The fund targets high-growth tech companies in sectors such as AI, consumer internet, fintech, robotics and communications infrastructure, with notable investments in Uber, ByteDance and Coupang.

SoftBank's Investments in India

Its Vision Fund 2  backs around nine Indian start-ups, including Swiggy, Ola Electric, Oyo, Paytm, Meesho, Delhivery, Lenskart, Unacademy and Udaan.

The ¥526 bn loss in Vision Fund 2 was primarily driven by significant markdowns in the public-market holdings of Indian start-ups such as Swiggy and Ola Electric, whose share prices fell nearly 40 %, resulting in a 21.7 % quarter-on-quarter markdown of those assets.

Overall, Vision Fund 2’s fair value dropped 2.7 % during Q4, reflecting challenges in both public and private markets.

The loss in VF2 offset roughly half of what could have been a profit exceeding ¥1 trn, highlighting the significant impact of early-stage markdowns on SoftBank Group’s bottom line.