SoftBank backs out of Snapdeal funding deal

Softbank, a Japanese investor backed out of a $150-200 million debt financing it had offered to Jasper Infotech, Snapdeal founder, escalating a boardroom battle involving the online marketplace’s new and old investors, multiple people aware of the development told ‘The Economic Times.’

Lines are being drawn across the seven-member board, with Soft-Bank, the largest stakeholder in Snapdeal, squaring off against two of Snapdeal’s early backers- Kalaari Capital and Nexus Venture Partners, according to ET report.

“Both Kaalari Capital and Nexus Venture Partners are livid at the developments, and have questioned Softbank about its intention with regards to Snapdeal,” one of the people cited above told ET.

“There was a term-sheet offering Snapdeal debt financing for a period of three years, which was, inexplicably, withdrawn within days, giving credence that Soft-Bank has made up its mind about selling the company,” a second person.

Apart from SoftBank, which has two seats at the table, and Kalaari and Nexus, which have one each, Jasper’s board includes cofounders Kunal Bahl and Rohit Bansal, and Bharti Enterprises vice-chairman Akhil Gupta as an independent director.

The latest sequence of events took place barely three weeks. SoftBank declined to comment on the developments, while Jasper Infotech, Nexus Venture Partners and Kalaari Capital did not reply to emails from ET.

According to the people cited above, SoftBank has led all discussions relating to potential sale of merger involving Snapdeal, with no stakeholder involved. “SoftBank has been solely fronting all the (sale) conversations till date. The other board members have been pretty much kept out of the loop thus far,” one of the people cited above said.

Source: http://economictimes.indiatimes.com/small-biz/startups/softbank-opts-out-of-jasper-funding-deal/articleshow/57980400.cms