SoftBank scores US$11.2b gain from DoorDash investment | FI SENSE

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Japanese technology giant SoftBank Group Corp bagged a $11.2 billion gain in the value of its stake in DoorDash Inc following the U.S. food delivery app’s blockbuster stock market debut.

SoftBank, which invested $680 million in DoorDash in the last three years, saw the value of its 25% stake in the company rise to $11.9 billion on the first day of trading.

DoorDash shares ended trading up 87.5% following their debut on Wednesday, valuing the company at $68.4 billion, more than four times its valuation in a private fundraising round six months ago. SoftBank’s DoorDash gains is a boon to Chief Executive Masayoshi Son’s efforts to revive its $100 billion Vision Fund, which recorded a string of losses in the past year on soured bets ranging from office space-sharing start-up WeWork to dog-walking startup Wag.

Last month, SoftBank said its Vision Fund was now worth about $76.4 billion, slightly more than the $75 billion paid for its 83 investments, due mainly to the tech-fueled rebound in public markets from a coronavirus-induced downturn earlier this year.

SoftBank has had other investment wins of late, including a rally in the shares of ride-hailing app Uber Technologies Inc , where it is a top shareholder, and the sale of semiconductor manufacturer Arm Ltd to Nvidia Corp for $40 billion.

SoftBank’s Vision Fund had invested in DoorDash over four fundraising rounds. It paid $280 million for its first DoorDash stake in March 2018, before buying more shares over two rounds in the following year for about $350 million. The fund made its last DoorDash investment worth about $50 million in June 2020, according to regulatory filings.

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