Yet to finalize PE, IPO route to raise funds: Unicommerce
According to CEO Kapil Makhija, an IPO is on the cards despite headwinds and funding challenges faced by tech startups
PremiumUnicommerce, a business-to-business e-commerce software-as-a-service platform offering solutions to retailers such as Myntra, Lenskart and TCNS, is exploring several options to raise capital including a public market listing and tapping private equity investors, said Kapil Makhija, chief executive officer of Unicommerce.
“Different options are there on the table, and going public is one. We have not yet made a decision on it. Discussions are happening. We will figure out the right path, the right time, and make an announcement," said Makhija. “The decision on whether we go with the public market route or a strategic or private funding will depend on different factors. There is no immediate need for funding. Once we put all the options on the table, depending on which is the right fit for our organization, we will take a decision."
The SB Investment Holdings UK-backed startup was set up in 2012, and acquired by e-commerce platform Snapdeal in 2015.
According to Makhija, an initial public offering (IPO) is on the cards despite headwinds and funding challenges faced by tech startups. “That’s just one factors, there are other factors in terms of our journey. There are obviously implications of us going for an IPO, so I think all those factors are being evaluated including macros and the overall market."
Unicommerce offers end-to-end fulfilment solutions, such as procurement, multi-vendor management, inventory, multichannel solutions, reporting, warehouses, drop shipments, inventory management and returns to brands for retailers across online channels. The platform is deployed by brands such as Mamearth, Bestseller, boAt Lifestyle, Lenskart, Sugar Cosmetics, Timex, Myntra and TCNS. Unicommerce claims to enable 1.7 million e-commerce transactions every day. It has so far received a total funding of $11.1 million, according to data by Tracxn.
Unicommerce also has a presence in overseas markets, including the Middle East, South East Asia as well as South Asia. The company works with both retailers and brands across 45-plus categories including apparel, electronics, beauty and personal care.
Meanwhile, Makhija said the company is also open to investing in other tech startups to strengthen its offerings. “We are evaluating a few opportunities, but there is nothing concrete yet. We are profitable, so capital won’t be a constraint, but we’ll figure out the right opportunity," he added.
Meanwhile, Makhija said business emerging from tier-2 and 3 cities has grown at a faster clip over the last three years. That’s because greater connectivity and e-commerce marketplaces enabling access to more pin codes is prompting small businesses in these markets to list online.
“Three years ago, the majority of inquiries used to come from sellers based in tier one cities, over the last two-to-three years, that number has flipped. That’s because a lot of new brands are coming up in these markets, and even traditional brands in these markets are now seeking to build online channel capabilities, they want to list on marketplaces, etc.," he said, pointing to seller demand for its products emerging from cities such as Indore, Jaipur, Surat, etc.
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