At a time when Softbank is busy pushing the Flipkart–Snapdeal merger, Company founders and Nexus Venture Partners have reportedly infused USD 17.5 Mn into Snapdeal in an emergency funding round. Yes, that is true, per filings made with the Registrar of Companies, Nexus has added USD 14.91 Mn while the remaining USD 2.61 Mn has been poured in by Snapdeal founders – Kunal Bahl and Rohit Bansal. The duo has invested INR 8.45 Cr each.
Recently, Softbank bought the stakes of Kalaari Capital and both the Snapdeal founders, raking in a total of 47.5% shareholding in the company. Plus, Kalaari Capital’s representative Vani Kola resigned from the board. Post her resignation, Kalaari Capital does not have any representative on Snapdeal’s Board. As we had reported earlier in May 2017, the two companies also signed a Letter of Intent (LoI) for the merger, further certifying the certainty of the deal.
On the other hand, Premji Invest, the investment arm of Azim Premji, has raised concerns to the Snapdeal board touching upon the interests of minority shareholders, post the deal with Flipkart. This is an interesting situation where, the deal seems to have hit a roadblock due to lack of investor consensus but something or the other makes the deal look inevitable, making it just a matter of when and not if.
But what is not clear right now is that what is the reason for raising emergency funds at this point. Some media reports say that the current cash reserve with Snapdeal was enough for them for next 4 months, but the additional infusion of funds may help them stay for some more time. Now, if this infusion is just to help sustain till all stakeholders agree to the deal and it actually happen or is it an attempt to keep away from it, is a question that has no answer as of now.