Early In­vestors On­board with Snapdeal Re­boot

Now, Nexus Ven­ture Part­ners comes out in sup­port of co ditch­ing Flip­kart merger

The Economic Times - - Disruption: Startups & Tech - Biswarup.Gooptu @times­group.com

New Delhi: Early in­vestors in Snapdeal have come out in sup­port of the on­line mar­ket­place’s de­ci­sion to ter­mi­nate its merger talks with larger ri­val Flip­kart ear­lier this week, and move for­ward as an in­de­pen­dent en­tity.

On Wed­nes­day, ven­ture cap­i­tal firm Nexus Ven­ture Part­ners, an early backer, and a board mem­ber of the Gur­gaon-based com­pany, said it would “con­tinue to part­ner with the com­pany, to help achieve its goals”.

“Nexus, as a long-term Snapdeal share­holder, fully sup­ports the Snapdeal 2.0 jour­ney,” said the firm that owns about10-11% stake in Snapdeal.

This fol­lows ear­lier re­marks by Soft­Bank Group, the largest stake­holder in the com­pany, as well as by Kenneth Glass, one of the ear­li­est in­vestors in Snapdeal, who have also pub­licly backed Snapdeal’s de­ci­sion to go solo. The state­ments come two days af­ter Jasper In­fotech, Snapdeal’s par­ent en­tity, an­nounced that it had ter­mi­nated ne­go­ti­a­tions for the pro­posed sale of its trou­bled on­line mar­ket­place to mar­ket leader Flip­kart, end­ing nearly seven months of tu­mul­tuous dis­cus­sions ini­ti­ated by Soft­Bank.

How­ever, some other in­vestors, in­clud­ing long-term backer Ka- laari Cap­i­tal, have ex­pressed dis­plea­sure over the lat­est de­ci­sion. “I main­tain my stand that the de­ci­sion to ter­mi­nate the deal was not sup­ported by Kalaari and also re­it­er­ate that the deal was called off with­out prior no­tice to us,” Vani Kola, man­ag­ing direc­tor at Kalaari Cap­i­tal, said in an email re­sponse to ET.

Kola, who was on the Jasper In­fotech board be­fore re­sign­ing in May, also de­nied me­dia re­ports stat­ing Soft­Bank had com­mit­ted to in­vest in the firm’s new fund in ex­change for its sup­port to close the buy­out by Flip­kart. “We again say that Kalaari is cur­rently not fundrais­ing and Soft­Bank is not an LP in any of Kalaari’s funds, there is no agree­ment with Soft Bank for them to be an LP in Kalaari’s fu­ture fund,” she said.

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