SoftBank Group Corp.’s longtime strategy of dumping mountains of cash on promising young companies to create big winners failed dramatically at WeWork, and is showing cracks at a number of its other investments. SoftBank’s nearly $100 billion Vision Fund gave companies like dog-walking app Wag and indoor farm Plenty more cash than they wanted, but the investments failed to ignite growth. After a sizable bet on online car-lessor Fair, that company is struggling to stay afloat. Wag is for sale, people with knowledge of the companies say.
Dozens of other firms, such as Chinese ride-hailing giant Didi Chuxing and South Korean e-commerce company Coupang, are in industries known for burning cash and with uncertain paths to profitability. The Wall Street Journal reported that Didi—the Vision Fund’s biggest investment at $11.8 billion—was seeking more cash this summer, months after a company executive said it was losing money on every fare booked. Coupang, in which the Vision Fund has invested $2.7 billion, said that last year its operating loss grew faster than its revenue.