Japan’s SoftBank Group Corp. has written down as much as 58.1 billion yen ($555 million) in two of its biggest investments in India, cab-hailing firm Ola (ANI Technologies Pvt. Ltd) and e-commerce marketplace Snapdeal (Jasper Infotech Pvt. Ltd), the company said.
“There is definitely pressure on both sides, investors as well as companies. SoftBank has started putting its house in order. I am not surprised with the tune of the money. It is not as if it is not eyebrow raising. Inflated valuation will stop and this is a precursor to that. But, we have to remember that existing investors, especially SoftBank, will not let valuation go below a certain point. There will be some amount of protectionism from existing investors to protect the valuations.” he added.
Source: Live Mint