Softbank Cancels SnapDeal Funding Due To Feud With Other Investors

Japanese investor Softbank canceled Snapdeal funding due to the clash between investors. According to the reports, Snapdeal canceled a $150-200 million debt financing which it had earlier offered to Snapdeal owner Jasper Infotech.

Snapdeal is currently at a do or die stage. Earlier it had announced a layoff of its employees and the founders too decided to go for a 100% pay cut. It was forced to shrink its operations and team. The reports suggest that there is a clash between previous Snapdeal investors Kalaari Capital and Nexus Venture Partners on one side and Softbank Group Corp (Snapdeal’s largest investor) on the other side.

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This boardroom battle has eventually resulted in Snapdeal not being able to raise a new funding round. In the past six months, Softbank invested at least once in Snapdeal and also it’s digital payments unit Freecharge.

Masayoshi Son, Founder of Softbank was said to be directly involved in the Snapdeal-Flipkart merger. And as per the documents filed with the Registrar of Companies, Nexus Venture Partners and Kalaari Capital owns around 10% and 8 % respectively in Snapdeal while Softbank owns 33% in the company and also roughly pumped $900 million into Snapdeal.