BackSnapdeal files papers for ₹1,250 crore IPO
Snapdeal’s draft IPO documents said it may sell up to ₹250 crore of shares to financial institutions in a pre-IPO placement, which would be 20% of the fresh issue portion; in that case, the primary issue size will be reduced accordingly
PremiumNEW DELHI : E-commerce platform Snapdeal, once a challenger to larger rivals Amazon and Flipkart, on Tuesday filed draft papers for an initial public offering. The Kunal Bahl-led company plans to sell new shares to raise ₹1,250 crore through the IPO, which will also see several top investors, including SoftBank and Sequoia Capital, selling some of their shares.
Earlier this month, Mint reported about Snapdeal’s plans to file for an IPO worth ₹2,000 crore.
Snapdeal’s draft IPO documents said it may sell up to ₹250 crore of shares to financial institutions in a pre-IPO placement, which would be 20% of the fresh issue portion; in that case, the primary issue size will be reduced accordingly. According to the documents, Snapdeal will use ₹900 crore of the issue proceeds to finance organic growth initiatives and the rest for general corporate purposes.
Snapdeal was among the early startups in India to be crowned a unicorn or a startup valued at more than $1 billion. It raised close to $2 billion funding since its inception in 2007, according to VCCEdge.
Snapdeal last raised an undisclosed amount in funding from Piramal Group executive director Anand Piramal in July 2019. In 2014, the company raised $627 million in a round of funding led by Japanese conglomerate SoftBank at a valuation of $1.68 billion.
The company’s largest shareholder, SoftBank, owns a 35.67% stake. Through its affiliate, Starfish Pte Ltd, SoftBank will sell as many as 24 million shares, while chipmaker Foxconn’s affiliate, Wonderful Stars Pte Ltd, will sell up to 2.97 million shares.
Canada’s Ontario Teacher’s Pension Plan Board will sell up to 1.36 million shares while Myriad Opportunities Master Fund will sell 0.65 million shares, and Sequoia Capital will sell 0.41 million shares, according to the DRHP. Madison India will sell up to 500,000 shares through its Milestone Trusteeship Services, along with a couple of individual investors, including Kenneth Stuart Glass and Laurent Amouyal (cumulatively up to 880,000 shares).
Current investors will sell over 30 million shares in total through the offer for sale.
Snapdeal’s other financial backers include Nexus India, Temasek Holdings, OTPPB, Intel Capital, and PI Opportunities Fund. It also counts e-commerce giants Alibaba and eBay as its strategic backers.
The firm’s consolidated operating revenues slid 44% from ₹846.4 crore in FY20 to ₹471.8 crore in FY21. Its net losses more than halved from ₹274.3 crore in FY20 to ₹125.4 crore in FY21.
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