Snapdeal’s investor looks for partial exit ahead of IPO; secondary round to fetch around $50M

• BySheetal Sidhu     |    September 14, 2021

Snapdeal’s investor looks for partial exit ahead of IPO; secondary round to fetch around $50M. One of the existing investors of IPO-bound Snapdeal is exploring a secondary transaction for a partial exit from the company which could be valued at $30-50 million, according to sources privy to the development. Bank of America is scouting for investors for this round, the sources added. Besides Softbank, Snapdeal counts Nexus, Alibaba, eBay, and BlackRock among some of the top investors on its cap table. The company, which is targeting a $400 million IPO at a valuation of $2-2.5 billion has also appointed Bank of America besides Axis Bank and JM Financial for the public listing. The transaction is at an early stage.

“The company has no plans to do a primary round right now. However because there is momentum in the company stock, secondary rounds are being explored. There seems to be a major FOMO (fear of missing out) of getting into Indian tech stocks. This may be working in favour of the company,” said an anonymous source. Snapdeal which was a big competitor to Flipkart and Amazon till a few years got behind in the race post-2016 following a funding crunch. In 2017, it explored a much talked about merger with larger rival Flipkart. However, after a lot of back and forth it decided to go solo following a disagreement over the valuation offered on the table, terminating all talks for a distress sale.

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