One of Snapdeal’s crucial investors, Softbank revoked a debt financing offer, as part of a supposed $150 Mn-$200 Mn funding round. Co-investors Kalaari and Nexus have questioned Softbank’s intentions regarding Snapdeal – as Softbank withdrew a term-sheet offering Snapdeal debt financing for a period of three years, suggesting the possible sale of the company.
SoftBank also proposed the sale of Snapdealto its nemesis, online marketplace Flipkart. As proposed, Snapdeal’s shareholders will get one share of Flipkart for every 10 they own in Snapdeal, while Snapdeal’s other backers, including Kalaari Capital and Nexus Venture Partners, have asked for $100 Mn each from the proposed sale.
Additionally, Softbank also proposed to sell Snapdeal subsidiary FreeCharge, as a separate entity, for as low as $150 Mn to $200 Mn. This is a 50% markdown compared to the $450 Mn that Snapdeal infused in the company in April 2015 during its acquisition. For now, Alibaba-backed Paytm is said to be the frontrunner for acquiring FreeCharge.
Next up, Ola, run by ANI Technologies Pvt. Ltd, is reportedly in talks to raise two separate rounds of funding. One includes a $100 Mn round from RNT Capital Advisors and Falcon Edge Capital. Another is $200 Mn round from other existing and new investors, to fuel its war chest against global giant Uber.
This week 27 startups raised about $118 Mn in funding altogether. (Calculations are based on the startups that disclosed funding amount.)
Startup Fundings Of The Week
Fastfox: Delhi-based B2C home rental firm Fastfox (earlier known as Professional Brokers) raised $4.6 Mn (INR 30 Cr) from Lightspeed India Partners, Blume Ventures, CyberAgent Ventures and others in a Series A funding round. The raised funds will be used to improve its technology, service delivery model and team expansion across engineering, sales, and operations.