Online Marketplace Snapdeal expected to file draft IPO papers within the next few days
- ByTejika Bajaj | December 21, 2021
Online marketplace Snapdeal is expected to file its draft initial public offering (IPO) papers with the country’s markets regulator SEBI (Securities and Exchange Board of India) in the next following few days, as per the sources close to the development.
Snapdeal, a leader in the online marketplace , is looking to raise around Rs 1,250 crore through primary share sale while the public issue will also have a secondary or offer for sale (OFS) component of anywhere between Rs 400-500 crore.
Snapdeal founders Kunal Bahl and Rohit Bansal are unlikely to sell any shares in the company’s upcoming IPO, people briefed on the matter said. Japanese investor SoftBank, which made early bets on the Indian ecommerce company, may offload parts of its holding in to trim its stake down to below 25%.
For Snapdeal, which began life in 2010, a successful IPO would mark a major turnaround after losing out to Amazon India and Walmart-owned Flipkart in the race to be India’s top ecommerce player. The company over the last three-four years, has largely focussed on selling unbranded products and reducing its monthly cash burn.
As it prepares to seek Sebi’s nod for an IPO, Snapdeal has been focusing on segments like fashion, electronic accessories with the strategy to sell quality products at affordable prices.
Snapdeal has also created what it calls ‘Power Brands’ by working closely with suppliers. These are essentially based on product searches on Snapdeal which consumers are looking for but do not find them easily on the platform. Currently, the e-retailer owns over a dozen such Power Brands which constitute around 10% of its total sales.
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