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Snapdeal gets Rs113 crore from Nexus, founders in surprise funding

LiveMint logoLiveMint 29-05-2017 Anirban Sen

Bengaluru: Struggling online retail firm Snapdeal has received Rs113 crore in an emergency financing round from existing investor Nexus Venture Partners and the company’s co-founders Kunal Bahl and Rohit Bansal.

The financing round comes as a surprise as Snapdeal (Jasper Infotech Ltd) has been in talks to sell itself to bigger rival Flipkart amid a boardroom battle involving its three most powerful investors and its co-founders.

Japanese technology and telecom conglomerate SoftBank Group Corp., Snapdeal’s largest investor, is trying to engineer the sale after giving up on the marketplace, which has lost out to Flipkart and Amazon India in the e-commerce battle. At the other corner are Nexus, Kalaari Capital, and Bahl and Bansal, all of whom were initially opposed to Snapdeal sale to Flipkart.

Nexus, one of Snapdeal’s earliest backers, has put in Rs96.26 crore in the latest round, according to documents with the Registrar of Companies (RoC). Snapdeal CEO Bahl and COO Bansal contributed Rs8.45 crore each, the documents show.

Mint reported on 28 April that Snapdeal then had cash reserves left for less than four months.

It’s not clear how the latest financing round, which increases Snapdeal runway by a few months, will affect the company’s talks with Flipkart.

Snapdeal, Nexus, SoftBank and Flipkart didn’t immediately respond to emails seeking comment.

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