Snapdeal has filed a DRHP for an IPO, with the profits to be utilised to fund growth plans, enhance logistical capabilities, and improve the company’s technology infrastructure.
On Tuesday, Snapdeal, a SoftBank-backed Indian e-commerce platform, filed for an initial public offering (IPO). According to the initial prospectus, this IPO consists of a fresh issue of equity shares worth up to Rs 1,250 crore and an offer for sale of up to 30,769,600 equity shares.
The founders of Snapdeal, Kunal Bahl and Rohit Bansal will not sell any of their shares in the IPO. According to the prospectus, Blackrock, Temasek, eBay, Intel Capital, Nexus Venture Partners, Tybourne, RNT Associates, Premji Invest, and others would not sell any shares in the IPO.
The proceeds of the offering will be used to fund expansion plans, develop logistics capabilities, and improve the company’s IT infrastructure.
SoftBank, Foxconn, Myriad Opportunities, Madison India, Sequoia Capital, and the Ontario Teacher’s Pension Plan Board are among the eight (out of 71) shareholders who have offered to sell a small portion of their respective shareholdings, totalling less than 8% of the company’s pre-offer equity share capital.
Several SoftBank-backed companies and well-known names like payments platform Paytm, beauty e-commerce retailer Nykaa, and food delivery platform Zomato have applied for a listing in India this year, as the stock market has reached new highs thanks to ample liquidity and strong retail participation.
Snapdeal, based in New Delhi and founded by Wharton student Kunal Bahl and Indian Institute of Technology, Delhi graduate Rohit Bansal in 2010, competes in India with larger rivals such as Walmart-owned Flipkart and Amazon.com Inc.
Kunal Bahl is not someone who gives up easily. And not without a battle, either.
Bahl, a pioneer in India’s eCommerce industry, co-founded Snapdeal, one of the country’s first unicorns, when he was just 24 years old. With a market value of $6.5 billion, it became the country’s second-largest ecommerce company in just six years. During that time, Snapdeal not only became a favourite of investors (including Ratan Tata, eBay, SoftBank, and Nexus Venture), but it also bought 11 firms, the most significant of which were Freecharge and Unicommerce.