SoftBank is gearing up for a potential U.S. debut of its Japanese payments app operator PayPay, and has brought on board Goldman Sachs, JPMorgan Chase & Co, Mizuho Financial Group, and Morgan Stanley to steer the process, two people familiar with the matter told Reuters. The listing could happen as early as the last quarter of this year and is expected to fetch over $2 billion from investors.
PayPay has played a key role in moving Japan away from its cash-heavy habits, drifting customers away with rewards for using its mobile payment app. It has grown into a more comprehensive fintech company over time by branching out into banking, credit cards, and other financial goods.
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With millions of customers, PayPay is currently one of the most widely used mobile payment systems in Japan. Although the firm has not revealed its worth, it is one of SoftBank’s most valuable non-telecom assets due to its size, market strength, and position in the portfolio.
PayPay has been concentrating only on Japan, seeking to fortify its position rather than enter outside markets. It has earned great customer loyalty and a dominant market share in cashless payments because of the domestic-first strategy.
SoftBank’s stock surged over 13% to a record high on Friday, propelled by the company’s impressive quarterly results and bold wagers on artificial intelligence among investors. This year alone, the company has pledged massive capital toward transformative projects, from a $30 billion commitment to OpenAI to spearheading funding for Stargate, a $500 billion U.S. data center initiative.
The enthusiasm spilled over into Japan’s broader market as well. SoftBank’s rally was the single biggest driver behind gains on the Topix index, helping push it past the symbolic 3,000-point threshold for the first time in history. The benchmark ultimately ended the day at 3,024, up 1.21%, cementing the moment as a milestone for both SoftBank and the Japanese equity market.
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SoftBank’s recent earnings update highlights India as a key growth market in its global investment mix, with 15 privately held companies together valued at around $4.1 billion on paper. Within that set, Lenskart and Meesho, both part of the Vision Fund 2 portfolio, are moving closer to the public markets, with IPO plans expected to take shape in the coming quarters.
On the listed side, SoftBank’s holdings delivered a $3.5 billion boost in the June quarter, due to rising share prices across several portfolio companies. In India, food delivery platform Swiggy and kids’ products retailer FirstCry were among those seeing stronger fair value estimates, reflecting improving market sentiment and growth prospects.