Snapdeal Files for IPO, Targets to Raise Rs. 1,250 Crore Through Fresh Issue of Shares


E-commerce platform Snapdeal on Tuesday filed documents with market regulator Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) through which it plans to raise Rs 1,250 crore.

As per the draft red herring prospectus, the IPO involves a fresh issue of shares of Rs. 1,250 crore and offer for sale of 308 lakh shares.

Snapdeal mentioned in the draft red herring prospectus, “The offer is authorized by our Board in accordance with a resolution passed on November 28, 2021 and the latest issue has been authorized by our shareholders pursuant to a resolution passed on December 5, 2021 “

“We were India’s largest pure-play value e-commerce platform in terms of revenue for FY20. Also, with over 200 million app installations. Google Play Store, we are the most installed pure-play value e-commerce application and one of the top four online lifestyle shopping destinations in terms of total app installations in India as of August 31, 2021.” Snapdeal Claimed in the draft paper.

Snapdeal was founded in 2007 by Kunal Bahl and Rohit Bansal. It started as a coupon booklet business, which was transformed into an online deals platform in 2010 and an online e-commerce marketplace in 2012.

“Our company is a professionally managed company and there is no identifiable promoter in terms of SEBI ICDR Regulations and Companies Act,” Snapdeal said.

of japan softbank Now New Delhi headquartered Snapdeal is the largest shareholder.

Snapdeal’s IPO comes after several tech giants hit the market including One97 Communications, which runs Paytm and FSN E-Commerce Ventures, which operates hero,

Snapdeal’s focus business is now on value lifestyle retail. The market size of Value Lifestyle Retail is expected to grow from $88 billion (approximately Rs 6,63,770 crore) in FY21 to $175 billion (approximately Rs 13,20,000 crore) by FY2026. about 15 percent. According to Snapdeal, the large presence of online value shoppers is expected to grow at an increasing rate, as the Indian e-commerce shopper base is projected to grow to 350 million people by FY2026, as against 140-160 million in FY21. were users. Mentioned in the draft documents filed with SEBI.

India’s e-commerce market was valued at $7.4 billion (approximately Rs 55,800 crore) in fiscal year 2021, and is projected to reach approximately $39.4 billion (approximately Rs 2,97,100 crore) by fiscal year 2026. This growth will be led. by “budding shoppers” from the middle-income group of Indian Tier 2+ cities, it said.