Indian e-commerce startup Snapdeal files for IPO – TechCrunch
Snapdeal filed an initial public offering on Tuesday, joining a number of Indian companies that have exploited the public market this year.
The New Delhi-based startup, which counts SoftBank among its backers, said in its draft prospectus that it would issue new shares worth $ 165 million. Some of its existing investors, including SoftBank, Sequoia Capital India and Foxconn, plan to sell up to 30.7 million secondary shares in the IPO.
The 11-year-old company, which once competed with Amazon and Flipkart in India, has lost significant market share in recent years and has shifted its focus to small town consumers.
Snapdeal, which has raised more than $ 1.7 billion to date (according to Crunchbase and Tracxn), says more than 50 million unique customers have purchased at least once on its platform since April 2018. âMore than 75% of our business comes from loyal customers. Over 70% of our sales come from cities beyond level 2 and 99% of our orders come from cellphones. And we cover 96% of PIN codes in the country. Our users browse and connect with us in seven languages, beyond Hindi and English, âwrote co-founder and CEO Kunal Bahl (pictured above) in a recent post on LinkedIn.
âCreating Snapdeal 2.0 has meant creating all the underlying capabilities required to serve value savvy users, staying within the safeguards of a good economy and moving quickly with bold and decisive steps,â he added.
The shift in focus came after months-long talks to merge the company with Flipkart failed to materialize in 2017.
In today’s prospectus, Snapdeal said it generated $ 31.9 million in operating income in the six months ending in September.
More than a half-dozen Indian consumer-focused startups filed for IPO this year. While some, including Zomato and Nykaa, have made remarkable debuts, others, including Paytm, which filed for the country’s largest IPO, have consistently performed below its share price of episode. Insurance aggregator PolicyBazaar also lost all of its IPO gains.