# SoftBank’s Latin American investments rack up $1 billion in losses *The Japanese conglomerate has invested $7.6 billion across the region and retains stakes in Nubank, QuintoAndar, Creditas and dozens of other companies. High interest rates have added to the pressure on valuations.* - Published: 2026-11-11 - Section: Insights - Tags: SoftBank, startups - URL: https://brazilstockguide.com/insights/softbanks-latin-american-bets-rack-up-1-billion-in-losses/ ![](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2026/11/Fachada-corporativa-moderna-da-SoftBank.png?fit=1640%2C959&ssl=1) **By Brazil Stock Guide —** Japan’s SoftBank has accumulated $1 billion in gross losses on its Latin American investments since 2019, according to financial results released on Tuesday (November 10). The figure marks a deterioration of approximately $200 million since March and underscores the challenges facing the Japanese investment giant as it seeks to recover billions of dollars poured into the region’s startups during the venture capital boom. Since launching its Latin American investment operations, SoftBank has deployed $7.6 billion and reported cumulative returns, including the estimated value of its remaining holdings, of $6.6 billion as of September 2026. That figure does not represent cash recovered solely through asset sales: it also includes the estimated fair value of investments still held in its portfolio and proceeds received. The $1 billion shortfall therefore represents a cumulative gross investment loss that may reflect both realized losses from divestments and paper losses on holdings that have yet to be sold. Performance deteriorated during the first half of the Japanese fiscal year, which began in April. At the end of the previous fiscal year in March, SoftBank had reported cumulative losses of $800 million in Latin America, with returns valued at $6.8 billion against the same $7.6 billion in invested capital. Between April and September, the group recognized approximately $300 million in investment losses across the region, although performance was broadly flat in the quarter ended September. The figures reflect investment valuations and realized results rather than a $1 billion cash loss during the reporting period. SoftBank’s Latin American operations expanded rapidly during an era of abundant global liquidity and historically low interest rates, when technology startups attracted substantial investment based on expectations of rapid growth. Brazil’s persistently high borrowing costs have added to the challenges, but they are only part of the story. The subsequent rise in global interest rates, combined with a slowdown in initial public offerings and a broad reassessment of startup valuations, has made it increasingly difficult for venture capital investors to turn their holdings into realized gains. Brazil remains central to SoftBank’s regional investment strategy. In an interview earlier this year, the group’s then-head of Latin American operations said approximately 55% of its portfolio companies were based in Brazil, compared with 35% in Mexico. Those percentages refer to the number of companies, rather than the amount of capital invested. ![](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2026/11/Portfolio-LatAm-da-SoftBank-no-Rio.png?resize=1672%2C941&ssl=1) The latest financial statements do not provide a country-by-country breakdown of investment losses, making it impossible to determine how much of the $1 billion shortfall is attributable specifically to Brazil. SoftBank’s Latin American portfolio still comprises 77 investments, including limited-partner interests in funds, according to a company disclosure dated September 30. Its Brazilian holdings include Nubank, Banco Inter, QuintoAndar, Creditas, Loft, MadeiraMadeira, Petlove, Loggi, Contabilizei, Gupy, Omie, Olist, Unico and VTEX. The group also retains stakes in regional businesses such as Rappi and Kavak. SoftBank’s holdings are generally minority investments, limiting its direct influence over company management, although it may participate in strategic decisions through board representation. The disclosures do not specify the value of individual holdings or identify which companies have contributed to the accumulated losses. SoftBank has also significantly reshaped its investment strategy. In June, Alex Szapiro, then head of the group’s Latin American operations, told Bloomberg that SoftBank was evaluating only four or five potential investments in the region, citing a shortage of companies sufficiently mature to absorb investments exceeding $50 million. Szapiro left the business that month and was succeeded by Juan Franck as regional head, with Rodrigo Costa taking responsibility for Brazil. The more cautious approach in Latin America contrasts with SoftBank’s growing concentration of capital in artificial intelligence globally. Under billionaire founder Masayoshi Son, the conglomerate has stepped up investments in technology companies and computing infrastructure, including a stake of approximately 13% in OpenAI, the developer of ChatGPT. In the same earnings release, SoftBank reported a consolidated net loss of around $7 billion for the quarter ended September, driven largely by losses related to U.S. data center infrastructure projects and higher financing costs. That group-wide result is separate from the cumulative losses recorded by its Latin American investments. Contacted by *Brazil Stock Guide*, SoftBank declined to comment on the performance of its Latin American investments. --- Source: Brazil Stock Guide, https://brazilstockguide.com/insights/softbanks-latin-american-bets-rack-up-1-billion-in-losses/