SoftBank is about to get a majority stake in Katerra after coming to its rescue with a whopping $200 million bailout. This new financing move from the Japanese investment firm comes on top of a previous $2 billion cash injection and is set to save the struggling construction start-up. The investment bank also wrote off an extra $435 million in debt in exchange for a 5% stake in the company.
The construction start-up’s vision included applying avant-garde methods and tools to achieve vertical integration and improve the construction and architecture industry. However, since being founded in 2015, Katerra has faced a tumultuous journey – one of mass layoffs, cost overruns and project delays (hardly rosy operations). The company’s new CEO, Paal Kibsgaard, who took over in July last year, said he welcomed SoftBank’s continued support and confidence, according to the Wall Street Journal.