SoftBank is exploring the sale of some of its stakes in Latin American startups, even when public offerings are less accessible in the region.
SoftBank Group, headquartered in Tokyo, is a global conglomerate known for its diverse portfolio ranging from telecom services to pioneering investments in tech startups through its Vision Fund.
Recently, the Japanese firm was involved in selling Pismo, a Brazilian fintech, which Visa has agreed to acquire for US$1 billion.
With this deal, set to finalize by year’s end, SoftBank is expected to more than double its initial investment made 18 months ago, shared Alex Szapiro, SoftBank’s point person in Brazil, to local media.
The firm’s internal return rate from this investment is 54%, writes Bloomberg linea in its latest report.
Szapiro, in an interview, mentioned SoftBank is leaning towards “strategic investors” given the challenging capital market scenario for startups, largely attributed to high-interest rates.
He hinted at more such divestments in the pipeline.
By June, SoftBank had committed US$7.6 billion in the region, with a fair value of US$6 billion.
After heavily investing in 2019 with a dedicated US$5 billion fund for LatAm startups, SoftBank’s pace in the region slowed, only to announce a US$3 billion fund 30 months later.
In other divestment news, SoftBank is selling its stake in Avenue, a digital broker catering to middle-class Brazilians investing in the US, to Itaú, Latin America’s most valued bank.
The acquisition will be in installments ending in 2026, totaling around R$1.25 billion.
Another stake sale includes Mexican payment company Yaydoo, acquired by PayStand, a blockchain-based B2B payment leader.
In addition, SoftBank sold its position in Brazilian educational fintech Inco, often referred to as Isaac.
Arco acquired in a stock exchange concluded in January, but details regarding potential returns remain undisclosed.