SoftBank’s Vision Fund 2 staged a sharp rebound in Q1 FY26, reversing heavy markdowns from last year
Swiggy’s stock surge on Indian exchanges contributed $139 Mn in paper gains to SVF2’s books
Overall, Vision Fund 2 posted $308 Mn in unrealized gains, helping SoftBank Group record its strongest quarter in four years
SoftBank’s Vision Fund 2 has bounced back the losses in the first quarter of financial year 2025-26. The Japanese tech investor has recorded is strongest quarter in the past four years, with food delivery major Swiggy emerging as a key driver of the rebound. The fund has made unrealised valuation gains totaling $308 million due to the rising share prices of Swiggy on Indian bourses.
“The gain at SVF2 was mainly due to unrealised valuation gains (net) totalling ¥45,508 Mn for investments held at the first quarter-end. These gains were largely attributable to share price increases of public portfolio companies, such as Symbotic and Swiggy Limited,” the investor said.
It has also booked a net profit of $2.87 billion in the first quarter. The valuation of publicly listed holdings under SoftBank Vision Fund 2 surged 22% quarter-on-quarter during the period. The fund clocked $48.8 billion in cumulative returns on $70.9 billion investments during the quarter under review, with a $22.1 billion gross loss.
This turnaround seems significant given the fund’s struggles in the previous financial year, when its Indian bets, including Swiggy and Ola, were sharply marked down. In Q4 FY2025, it has reported a loss of $708 million, driven by declines in portfolio valuations.
How SoftBank Vision Funds Performed in Q1
SoftBank’s Vision Funds, which includes Vision Fund 1, Vision Fund 2, and its Latin American Funds, recorded an investment gain of $4.94 billion in the quarter, a sharp jump from approximately $1.2 billion in the previous quarter. It also reported a pre-tax income of around $3.03 billion in the quarter, reversing the loss in the year-ago period.
Vision Fund 1 led the gains with around $3.47 billion, fuelled by a rally in public holdings like Coupang and Auto1, On the other hand, Vision Fund 2 chipped in $768 million, buoyed by valuation gains in Symbotic and Swiggy.
“The fair value of investments held at the first quarter-end increased by 3.5% from the previous quarter-end — up 22.4% QoQ for public portfolio companies, mainly due to share price increases in Symbotic and Swiggy,” SoftBank said.
Since their inception, Fund 1 has generated a gross gain of $27 billion and Fund 2 continues to carry a gross loss of $22.1 billion. Still, the fund’s track record in cashing out of bets and returning profits has been uneven in recent years. Till June, the Vision Funds had logged cumulative investment gains of about $5 billion on a total committed capital of $172.2 billion.
As of June 2025, SoftBank’s investment in Swiggy was valued at $807 million, up from the $450 million originally deployed. The difference of $357 million between the two figures has been translated into unrealised gains. This puts Swiggy’s gross multiple on invested capital at 1.5x in SVF2’s portfolio.
The investor’s Q1 FY26 performance has taken SoftBank share price to a new high of 14,205 yen on Friday morning.
How Swiggy Performed in Q1 FY26
Swiggy’s share price made a strong comeback in Q1 FY26, with most of the upside coming in June. The stock, which opened the quarter near ₹330 and briefly slipped to around ₹305 in early May, went on to rally more than 20% in June. At that time, Swiggy stock price stood between ₹400-₹406 apiece.
The surge was driven by a rebound in investor sentiment and a broader uptick in platform-based companies, which boosted Swiggy’s market valuation and added to SoftBank Vision Fund 2’s quarterly gains.
The momentum continued in July, which further pushed its stock price to ₹420 before easing slightly in August. Even after the pullback, it remains comfortably about its IPO price of ₹390, a sharp reversal from the March quarter, when it had fallen below that mark amid deepening losses.
However, Swiggy has reported nearly 96% increase (year-on-year) in its net losses to ₹1,197 crore in the first quarter of fiscal year 2026. The number was ₹611 crore in the same period a year ago. Its net losses were ₹1,081 crore in Q4 FY25 due to rapid expansion in its quick commerce arm ‘Instamart’. On the other hand, Swiggy’s revenue from operations surged 54% YoY to Rs 4,971 in Q1 FY26, as compared to ₹3,222 crore a year ago.
The food and grocery delivery platform reported an adjusted EBITDA loss of ₹813 crore for the quarter ending June FY26. This marked a sharp 134% increase from ₹348 crore in the same period last year. On a sequential basis, the loss widened from ₹732 crore in the previous quarter.
Despite the rising losses, Swiggy saw robust user growth. The platform’s average monthly transacting users (MTUs) climbed 35.2% YoY to 21.6 million. On a quarterly basis, it added 1.2 million MTUs—taking the count to 16.3 million, the highest single-quarter addition in two years.
In its core food delivery segment, revenue rose 20% YoY to ₹1,800 crore. The gross order value (GOV) of this vertical also grew by 18.8% to ₹8,086 crore, up from ₹6,808 crore a year ago.
