Ministry of Corporate Affairs launches probe into Snapdeal operator
Aug 14, 2024
The probe is reportedly part of a larger investigation by the MCA into around 700 companies that have received investments from Chinese firms
The Ministry of Corporate Affairs (MCA) has launched a probe into the AceVector Group for alleged non-compliance with the Companies Act.
The company operates brands like e-commerce marketplace Snapdeal, recently-listed Unicommerce, and Stellaro Brands.
The probe is reportedly part of a larger investigation by the MCA into around 700 companies that have received investments from Chinese firms.
An AceVector spokesperson confirmed the development to Business Standard.
“AceVector Ltd received a request for information from MCA in May 2024. The company has furnished relevant information and remains committed to addressing further queries in accordance with the law and in line with its high standard of governance. AceVector has no Chinese investor in the company,” the spokesperson said.
Acevector has raised a cumulative funding of $1.5 billion across 10 rounds since being founded in 2007. The company’s backers include Softbank and Nexus Venture Partners, according to data from market intelligence platform Tracxn.
In 2015, China’s Alibaba had invested $121 million in Snapdeal, before exiting the company in 2021, as per media reports.
The MCA has requested information pertaining to AceVector’s business, its authorised share capital and working results.
According to media reports, the probe was launched after the registrar of companies (RoC) reported irregularities in its financial filings.
In FY23, Snapdeal reported a consolidated loss after tax of Rs 282.2 crore, down from Rs 510-crore loss in the previous year.
Meanwhile, the company’s total income fell to Rs 388.1 crore, from Rs 563.5 crore in the previous financial year (FY22).
Its software-as-a-service (SaaS) platform Unicommerce recently launched an initial public offering (IPO) worth Rs 276 crore. It was open to the public from August 2 to August 6, with a price band of Rs 102-108 per share.
[The Business Standard]
