SoftBank renews bet on Latin America with $3 bln fund

Vtex

14/09/2021 10:30

By Carolina Mandl
    SAO PAULO, Sept 14 (Reuters) - SoftBank Group Corp  9984.T 
on Tuesday launched a $3 billion fund to invest in technology
companies in Latin America in a bid to build on the success of
its initial fund for the region, which has spent most of its
capital. 
    In a statement, the Japanese conglomerate said it plans to
invest in listed and private tech companies, adding the fund may
raise additional capital in the future.
    SoftBank's renewed bet on Latin America comes as venture
capital is booming in countries such as Brazil and Mexico, and
follows a decision to pause new investments in China https://www.reuters.com/business/finance/japans-softbank-reports-39-fall-q1-net-profit-2021-08-10
 after a regulatory crackdown on tech companies.  urn:newsml:reuters.com:*:nL1N2PH099
    "There is so much innovation and disruption taking place in
Latin America, and I believe the business opportunities there
have never been stronger," SoftBank Group's chairman Masayoshi
Son said in the statement. "Latin America is a critical part of
our strategy."
    SoftBank's first $5 billion Latin American fund was launched
in 2019 by executive vice-president and Chief Operations Officer
Marcelo Claure at a time when no deep-pocketed investor had
signed big checks for startups in the region. 
    It has invested $3.5 billion in 48 companies from sectors
ranging from education to finance and logistics, which are now
valued at $6.9 billion.
    Most of its portfolio companies remain private.    
    Still, companies such as Banco Inter SA  BIDI11.SA , which
SoftBank bought into when it was already listed, and e-commerce
software platform VTEX  VTEX.N , which went public in July,
helped the fund post gains in the last quarter.
    COO Claure, who will oversee the new fund, said returns from
the initial fund have exceeded SoftBank's expectations.  
       

 (Reporting by Carolina Mandl; editing by Richard Pullin)
 ((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11
97116-3806;))