The plot only gets thicker from here, as even after multiple rounds of talks, Softbank has not been able to convince the early-stage investors in Gurgaon-based Snapdeal for a sale which would help the Japanese major exit from the company.
According to four sources privy to the developments, while early-stage investors in– Kalaari Capital and Nexus Venture Partners – are confident of the company’s present business plan and want it to go for an initial public offering (IPO) in the next two years, Softbank wants to immediately sell its stake and hedge its bets in other e-commerce ventures, something which has caused a major rift between the two parties.
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Also, according to sources, while Softbank is trying to sell its stake in Snapdeal, where it is the biggest shareholder and has invested close to a billion dollars, it has also assured the e-commerce company of giving close to $200 million so that it can go ahead with its business plans and head for an IPO.
“There are two different things Softbank is doing. On one hand it is telling Snapdeal that it has confidence in the founders and their plans, on the other hand it is looking for a quick exit. We have to see what finally happens,” said a person close to the developments().\