SoftBank Q2 Earnings: Lenskart and Meesho Drive Gains Amidst Ola Electric Loss

Portfolio Performance Mixed as Vision Fund Navigates Volatility

Japanese technology conglomerate SoftBank Group Corp has released its Q2 earnings for the fiscal year 2024-25, highlighting a period of significant valuation shifts within its Indian startup portfolio. The Vision Fund 2 (SVF2) reported notable unrealized gains driven by eyewear unicorn Lenskart and e-commerce platform Meesho. These gains underscore the continued resilience of market leaders in India’s consumer tech space even as broader market sentiment remains cautious.

However, the quarter was not without its setbacks. SoftBank booked a valuation loss of $42 million on its investment in the recently listed EV manufacturer Ola Electric. Despite a strong initial public offering, the company's stock has faced downward pressure, impacting the fund's overall mark-to-market performance. This contrast highlights the volatility often associated with transitioning from private to public markets in the current economic climate.

Lenskart and Meesho Sustain Momentum

Lenskart and Meesho remain standout performers for SoftBank. Lenskart has consistently expanded its manufacturing capabilities and omnichannel presence, securing its position as a dominant player in the global eyewear market. Similarly, Meesho’s focus on the long-tail e-commerce segment and its lean operational model have contributed to a favorable valuation trajectory.

SoftBank’s ability to mark up these valuations indicates a robust recovery for high-performing Indian startups that have demonstrated clear paths to profitability or scale efficiency. For investors, this serves as a signal that high-quality assets continue to command premium valuations despite the "funding winter" narratives that have dominated the ecosystem over the last two years.

Outlook for Vision Fund Investments

The Q2 results reflect SoftBank’s broader strategy of balancing high-growth private bets with the realities of public market fluctuations. While the loss in Ola Electric is a temporary hurdle, the fund’s overall health remains tied to the upcoming exit windows for its other late-stage portfolio companies. As more Indian startups eye the public markets in 2025, SoftBank’s ability to navigate these transitions will be a key metric for its global investment success. Founders can look to these results as a reminder that fundamental business strength remains the primary driver of valuation, regardless of public market noise.