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SoftBank Eyes AI Boom: India Investments Surge Anew
12 Dec
Summary
- SoftBank is reinvesting in Indian startups, focusing on the AI sector.
- The investor aims to write smaller checks, targeting capital-efficient companies.
- India is a strong performing geography for SoftBank's Vision Fund.
SoftBank, the world's largest tech investor, is resuming its active investment in India after a two-year hiatus, with a strategic focus on artificial intelligence (AI) startups. The firm previously slowed its pace due to the cyclical nature of investments but has recently harvested substantial gains, including exits from Lenskart and Meesho, demonstrating India's strong performance for its Vision Fund.
With over $56 billion in its Vision Fund 2, SoftBank is now looking to invest in AI-first companies, adapting its strategy to write smaller checks. This shift is driven by the increasing capital efficiency of startups and a focus on the application layer for quicker scaling, rather than infrastructure-heavy ventures.
Despite facing challenges with some portfolio companies, SoftBank sees a healthy pipeline of AI deals. The firm is meticulously vetting early-stage AI companies, anticipating that those with strong traction can evolve into scaled businesses, potentially leading to a renewed wave of investments in the Indian tech landscape.
