Vani Kola Of Kalaari Capital Steps Down From Snapdeal Board Before Flipkart Deal
Vani Kola, managing director of venture capital firm Kalaari Capital, has resigned from the board of online marketplace Snapdeal, amid its sale talks with Flipkart, as per the documents filed with Registrar of Companies (RoC). Kola also confirmed the development in a text message to BloombergQuint.
In a letter dated May 2, Kola had requested the board to discharge her from her duties as a director of the company with immediate effect.
Vani, Kalaari's sole representative on the Snapdeal board, was appointed director in 2009.
Kalaari holds an approximately 8 percent stake in the e-commerce venture, whereas another venture firm, Nexus Venture Partners, owns 10 percent.
Snapdeal founders, Kunal Bahl and Rohit Bansal, together hold less than 6.5 percent in the company, as per the filings.
The Delhi-based company's largest shareholder is Japan’s Masayoshi Son-led SoftBank Group Corp. with a close to 30 percent stake.
SoftBank has been trying to engineer the sale of Snapdeal with rival ecommerce company Flipkart. And it has been widely reported that the two companies and their investors have been in talks for a few months.
Son is willing to infuse up to $1 billion in the e-commerce company in a deal with Tiger Global Management, the largest investor in Flipkart, according to a Bloomberg report quoting people familiar with the development.
While Kalaari is said to have given its consent to the proposed deal last month, Nexus agreed to terms last week, two people privy to the development told BloombergQuint.
The deal, if it happens, is primarily designed to strengthen both loss-making companies in the face of bruising competition from Amazon India.
Snapdeal, which was last valued at $6.5 billion when it raised $200 million in February 2016, saw its losses more than double to over Rs 3,000 crore in the financial year ended March 2016, according to documents filed with the Registrar of Companies (RoC).
Snapdeal didn’t immediately respond to an email seeking comment on Kola’s resignation.