E-commerce retailer Snapdeal is eyeing an initial public offering to raise $350-400 million, according to sources aware of the talks, and is looking for a valuation of $2-2.5 billion. The company, which has backers like SoftBank, wants to look at this as an opportunity to allow retail investors to become a part of its expansion story in tier-2, 3, and 4 markets.
If the company decides to proceed with the IPO process, it will join the ranks of other start-ups that are looking to join the listing frenzy. In the first four months of this fiscal, about 12 companies have raised as much as Rs 27,000 crore through listings.
Snapdeal, which was founded in 2010, has off late repositioned itself as a player in the value e-commerce segment. Co-founders Kunal Bahl and Rohit Bansal put in place a plan called Snapdeal 2.0 in 2017 after talks of a merger with Flipkart fell through.
The company is talking to JM Financial Ltd and another local banker, they said, requesting anonymity.
As part of its efforts to deepen the availability of value merchandise online, Snapdeal has in the last year added more than 5,000 manufacturer-sellers on its platform, it said in March.
The news around Snapdeal’s listing comes at a time when Indian unicorns and startups are lining up to list on Indian exchanges. The second half of this year is expected to see unicorns, including beauty marketplace Nykaa, insurtech and lending platform PolicyBazaar, logistics major Delhivery and Noida-based financial major Paytm, list on Indian exchanges.
According to a recent report by Kearney, the value e-commerce segment – defined as a category that caters to customers who focus on affordable products – is expected to grow to about $20 billion by 2026 and $40 billion by 2030 in India.
Categories: IPO Bankers