Struggling e-commerce firm Snapdeal which is at the cusp of a merger with Flipkart, raised Rs 113crore on March 10 from early investor Nexus Venture Partners, according to documents available with the registrar of companies.
The funding round may give additional runway for the e-commerce firm for sustenance, even as it is in talks with its larger rival Flipkart for a merger. The company has raised Rs 8.4crore each from founders Kunal Bahl and Rohit Bansal. About Rs 94crore is being invested by Nexus Venture Partners, in the emergency funding.
In March, it was reported that there was just USD 100mn left in Snapdeal’s bank, as of December 2016. The money was depleting with every passing day.
The latest funding comes as a surprise considering that the company has come to the point of getting acquired (by Flipkart) following lack of funds being poured in from the investors.
The fund raise also follows multiple reports of board room battles where the early investors (including Nexus) were in conflicts with the largest stakeholder of the firm Softbank to agree to terms to sell the company to Flipkart.