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SoftBank turns around in FY25: Clocks $7.4 Bn profit, bets big on AI and chips

EntrackrEntrackr · 4m ago
SoftBank turns around in FY25: Clocks $7.4 Bn profit, bets big on AI and chips
Medial

SoftBank Group has posted a net profit of $7.4 billion in FY25, marking a sharp reversal from a loss of $1.4 billion in the previous year. The turnaround follows aggressive bets on artificial intelligence and semiconductor plays. The Japanese conglomerate’s revenue rose 7.2% year-on-year to $45.97 billion, while income before tax jumped to $10.8 billion from just $367.5 million last year. SoftBank attributed the gain to a $23.5 billion investment profit from holdings in Alibaba, T-Mobile, and Deutsche Telekom. Its investment business, led by founder Masayoshi Son, recorded ¥3.41 trillion ($21.7 billion) in gains. This included ¥1.88 trillion ($11.94 billion) from Alibaba and ¥1.35 trillion ($8.58 billion) from T-Mobile. However, these were partially offset by a ¥2.03 trillion derivative loss, largely due to prepaid forward contracts using Alibaba shares. The performance of the Vision Fund segment remained mixed. While Vision Fund 1 clocked a ¥940 billion gain ($5.97 billion), Vision Fund 2 posted a loss of ¥526 billion ($3.34 billion). The group also incurred a ¥491.8 billion ($3.17 billion) charge related to third-party investor interests in the Vision Funds. A large part of Vision Fund 2’s losses came from a drop in the value of companies like Ola and Swiggy, which saw their stock prices and valuations fall. SoftBank said the value of its publicly listed investments under Vision Fund 2 fell by 21.7% in the last quarter. Meanwhile, SoftBank is doubling down its investment in AI infrastructure. It has committed up to $30 billion to OpenAI Global and is acquiring US-based chipmaker Ampere for $6.5 billion. The group also launched the “Stargate” project — a $500 billion initiative to build large-scale AI data centers. Despite the return to profitability, SoftBank flagged macro uncertainties including FX volatility, regulatory risks, and performance variance in its private market bets. The company will propose a year-end dividend of ¥22 ($0.14) per share, taking the full-year payout to ¥44 ($0.28), unchanged from last year.

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Amazon-backed M1xchange turns profitable in FY25; revenue grows 80%

EntrackrEntrackr · 6d ago
Amazon-backed M1xchange turns profitable in FY25; revenue grows 80%
Medial

M1xchange, the Amazon-backed digital invoice discounting marketplace, staged a remarkable turnaround in FY25 by swinging to profitability after ending the previous year in losses. The company reported a net profit of Rs 12 crore in FY25, compared to a loss of Rs 4 crore in FY24. Founded in 2016, M1xchange TReDS is a digital marketplace to sell receivables to banks/NBFCs set up under the approval of the Reserve Bank of India (RBI) to facilitate the discounting of invoices and bills of exchange on a PAN India basis. The revival was powered by strong revenue growth. The company’s operating revenue for the year grew 80.5% to Rs 102 crore from Rs 56.5 crore in FY24, according to its consolidated financial statement sourced from the Registrar of Companies (RoC). The bulk of the revenue came from transaction and commission charges, which surged to Rs 93 crore, accounting for more than 91% of the topline. Software development and maintenance fees added another Rs 2.3 crore, while other operating income nearly doubled to Rs 6.7 crore during the period. From a cost perspective, employee benefits were the largest contributor, making up around 70% of overall spend. To the tune of scale, this cost rose 49% to Rs 64 crore in FY25 from Rs 43 crore in FY24, while legal and professional charges grew 40% to Rs 7.4 crore. Overall, M1xchange’s total expenses rose to Rs 91 crore in FY25, a 44% increase from Rs 63 crore in FY24. Despite the heavier expense load, the sharp rise in revenues ensured that M1xchange closed the year at Rs 12 crore profit. The company’s ROCE and EBITDA margin stood at 13.59% and 17.65% respectively. The Gurugram-based company reported current assets worth Rs 95 crore in FY25, including Rs 48 crore in cash and bank balances. While profits with scale are bound to follow for a bill discounting platform, the numbers should improve further as employee costs should also stabilise. According to TheKredible, M1xchange has raised a total of $56 million of funding to date, having Amazon, SIDBI, Beenext, Mayfield, and IndiaMart as its lead investors. The company’s founder and CEO, Sundeep Mohindru, owns 31% of the company.

Exclusive: Oxyzo clocks Rs 330 Cr PAT on Rs 1,207 Cr revenue in FY25

EntrackrEntrackr · 4m ago
Exclusive: Oxyzo clocks Rs 330 Cr PAT on Rs 1,207 Cr revenue in FY25
Medial

According to consolidated financial statements reviewed by Entrackr, Oxyzo’s operating revenue rose to Rs 1,207 crore in FY25, up from Rs 903 crore in FY24. Following a 58% year-on-year growth in FY24, B2B fintech unicorn Oxyzo Financial Services continued its strong momentum in FY25, recording a 33.7% YoY increase in revenue for the fiscal year ended March 2025. The company also reported a 16.5% rise in profit during the same period. Oxyzo, the lending arm of the industrial goods and services procurement platform OfBusiness, offers credit solutions and loans to small and medium enterprises (SMEs) and startups. Interest income from loan disbursements contributed 95% of its total operating revenue, which rose to Rs 1,141 crore in FY25. The remaining revenue came from fees and commissions. As a lending-focused company, finance costs emerged as the largest expense for Oxyzo, accounting for 58% of its total spending. These costs climbed to Rs 439 crore in FY25, in line with the company's expanding scale. Oxyzo spent Rs 143 crore on employee benefits. Its legal, impairment, administrative, and other operational expenses contributed to a total expenditure of Rs 755 crore in FY25, up from Rs 514 crore in FY24. The combination of topline growth and controlled cost mechanism helped the company post a 16.5% growth in profits, which rose to Rs 339 crore in FY25, compared to Rs 291 crore in the previous fiscal year. Oxyzo raised approximately $200 million in 2022, achieving unicorn status following its Series A round led by Alpha Wave and Tiger Global. The company also plans to raise a fresh round of equity in the second half of FY26 in the range of $100-150 million. According to startup data intelligence platform TheKredible, the OFB group, including its promoters, holds a 74.5% stake, while Alpha Wave is the largest external investor with a 7.4% share, followed by Tiger Global. Its parent OfBusiness is also gearing up for a $1 billion IPO, expected to include a combination of a fresh issue and an offer for sale.

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