In a surprising development involving Snapdeal, the struggling online marketplace has raised Rs 113 crore funding from existing investor Nexus Venture Partners and Snapdeal’s CEO Kunal Bahl and COO Rohit Bansal.
For last few months, Snapdeal has been in talks with rival Flipkart to sell itself. Softbank Group, which is the largest investor in the company, is leading the deals after giving up on the marketplace.
According to insider sources, Nexus, Kalaari Capital, and Snapdeal’s founders Bahl and Bansal, were opposed to the idea of company’s sale to Flipkart. However, multiple media reports suggested that the Flipkart started due diligence last week after Snapdeal’s board of directors agreed unanimously to Softbank’s proposal to sell Snapdeal to Bengaluru based company.
Nexus has put in Rs 96.26 crore in the latest round, Registrar of Companies (RoC) filing revealed. Bahl and Bansal contributed Rs 8.45 crore each.
Earlier in April, Snapdeal was reported have cash reserves to last them only four months. Recently, many sellers had complaint of not getting payment from Sanpdeal.
However, It’s yet to be seen how the latest funding will affect the company’s talks with Flipkart.