News Update

Snapdeal-Owned Unicommerce’s DRHP Reveals Strong Financial Performance

• ByStartupStory     |    January 8, 2024

Unicommerce, a SaaS startup owned by Snapdeal, has filed its draft red herring prospectus (DRHP) and showcased impressive financial figures, indicating robust growth and profitability.

In the first half of FY24, Unicommerce posted a net profit of INR 6.3 Cr, nearly matching its full-year FY23 net profit of INR 6.4 Cr, signifying a remarkable performance in a shorter timeframe. The startup’s operating revenue for H1 FY24 stood at INR 51 Cr, reflecting a steady growth trajectory. In FY23, its operating revenue surged by 52% to INR 90 Cr from INR 59 Cr in FY22.

Unicommerce, which was acquired by Snapdeal in 2015, specializes in providing a suite of SaaS products tailored for managing post-purchase ecommerce operations for enterprises and small and medium businesses (SMBs).

The startup’s total income, including other sources, reached INR 54 Cr in the six-month period ending September 2023. However, its total expenditure during H1 FY24 amounted to INR 45.5 Cr. This included significant expenses such as employee benefit expenses, which totaled INR 34.5 Cr in H1 FY24. In FY23, these expenses increased by 47% to INR 62 Cr from INR 42.3 Cr in FY22.

Another major expenditure for Unicommerce was server costs, which amounted to INR 2.4 Cr in H1 FY24. This represented a slight decrease from the INR 5.4 Cr spent in FY23 and the INR 3.28 Cr spent in FY22.

Unicommerce’s IPO filing comes at a time when the Indian startup IPO market is witnessing heightened activity. The SoftBank-backed startup’s IPO will feature an offer for sale of shares, with no plans for fresh issuance. The DRHP indicates that investors are looking to sell up to 2.98 Cr shares during the IPO.

SoftBank, holding a 29.23% stake in Unicommerce, is set to sell the highest number of shares in the IPO, amounting to 1.6 Cr shares. AceVector Limited, the promoter and parent entity of Snapdeal, will also participate by selling up to 1.14 Cr shares of Unicommerce. Currently, AceVector holds a 38.18% stake in Unicommerce.

With its strong financial performance and the backing of prominent investors, Unicommerce’s IPO is poised to attract considerable attention from investors looking to capitalize on the Indian startup boom.

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