Early Investors Onboard with Snapdeal Reboot
Now, Nexus Venture Partners comes out in support of co ditching Flipkart merger
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.