Yebhi has been making news for past few months now, firstly after raising INR 60 Cr in funding from existing investors including Fidelity Growth Partners India, Qualcomm Ventures, Nexus Venture Partners and Catamaran in April and then when it became IRCTC’s white label partner for its eCommerce venture and later upon receiving criticism for the IRCTC eCommerce play being its mimic.
The online fashion and lifestyle retailer is now once again in the news as it is gearing up to raise upto USD 30 Mn in yet another funding round but this time without participation of its existing investors – Fidelity and Nexus Venture Partners.
Adding to this, according to reports, Raul Rai, MD of Fidelity, and Suvir Sujan, co-founder of Nexus Venture Partners, had left the boards of BigShoeBazaar Pvt Ltd in September this year, which creates a doubt that maybe the two companies have written off their investment in Yebhi.
”The financing environment in eCommerce is tough. Most of these guys are early stage small investors and feel that they can’t take lead any further in investing and take the company forward. In this situation they feel it’s not their moral right to sit on the board if they are not financing their investors; so they are only waiting and watching,” said Manmohan Agarwal to Medianama.
But Manmohan doesn’t think that the two investors have written off their investments as he points out that Yebhi has other investors as well who are also entitled to be on a board seat but these investors have never appointed anyone to be part of it.
Yebhi was launched in 2009. In July 2012, it had raised INR 100 Cr in Series C from Fidelity Growth Partners India and Qualcomm Ventures. Prior to that it had also raised INR 50 Cr from Nexus Ventures Partners and Catmaran Ventures in two separate rounds of funding. The company also acquired an online jewelery portal Stylishyou.in for over USD 1 Mn, in a cash-and-equity swap deal.
Update: Post publishing this news, PR Spokesperson of Yebhi has clarified on few points mentioned in the news, though response is conflicting to what Manmohan has mentioned earlier. Here are the clarification points by Yebhi:
1. Our current investors still have the right to board seat and are likely to appoint directors soon
2. All our current investors will definitely participate in the new round of funding
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