Brand Quad paid its former investor Skolkovo Ventures 187 million rubles

Russian-French company Brandquad (Brand Quad LLC), which promotes a system for retailers to monitor product information and online sales statistics, paid Skolkovo Ventures (SK Capital LLC) 187 million rubles as part of a deal between the companies.

“To the general satisfaction of the parties, the legal dispute ended with the conclusion of a settlement agreement, the terms of which were fulfilled by all parties,” a representative of SK Capital told RB.RU. The money was to be transferred by June 30.

The company’s funds could be provided by a participant of the Russian-French startup – Free Invest LLC, a subsidiary of the Internet Initiatives Development Fund (FRII). According to the Unified State Register of Legal Entities, on June 6, Frii Invest LLC received 30% of the company. On May 31, the fund’s general director Kirill Varlamov told RBC that the company invested 150 million rubles in Brandquad, without indicating the purpose of the funds or the investment mechanism.

At the same time, the company abandoned its claim against Skolkovo Ventures for 852 million rubles and filed the corresponding petition with the Moscow Arbitration Court. As part of the lawsuit, Brandquad demanded to recover the amount of damage in the form of marketing expenses incurred, damage to business reputation and the amount of lost profits.

In 2021, SaaS startup Brandquad raised €1.5 million from the Skolkovo Ventures fund and €1 million from BPI France (France’s state investment bank). The money was given to Brandquad in the form of a convertible loan and soft loan and would be used to develop the marketing and sales of Brandquad products in the markets of Europe, the Middle East and the United States, as well as for the opening of an I center +D in Lille, France.

Brandquad did not meet the conditions to convert the loan into equity; As the deadline for repayment of funds approached, the investor and the company began negotiating debt restructuring. After the expiration of the obligations arising from the agreement, the fund went to court to resolve the issue within the legal framework.

A representative of SK Capital confirmed to RB.RU on June 11 that the dispute between the parties ended with the conclusion of a settlement agreement. According to him, Brand Quad was to pay its former investor 187 million rubles, but at that time it was not known whether the funds had been paid.

“Following the conclusion of the settlement agreement, SK Capital LLC and Brand Quad LLC currently have no grounds to initiate any additional legal proceedings,” a representative of SK Capital clarified on June 11.