Snapdeal Limited IPO

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To be announced

About

Snapdeal Ltd. is an online eCommerce platform focused on the value lifestyle segment, catering to mid-income “Bharat” shoppers in Tier 2+ cities. Established in 2007, it evolved from a coupon booklet business to an eCommerce marketplace. The company, with a vision to be India’s leading value lifestyle omni-channel provider, offers a diverse range of merchandise. In addition to its online operations, its subsidiary Unicommerce provides e-commerce software solutions. The public offer includes a fresh equity issue of up to Rs. 1,250 crores and an offer for sale of 3.07 crore equity shares from existing shareholders like SoftBank and Sequoia Capital. Their strategic focus involves positive unit economics, expanding into omnichannel distribution, and growing Unicommerce to enhance overall revenue.


What is the issue size of the Snapdeal Limited IPO?

The entire public offer of Snapdeal is a fresh issue of equity shares aggregating up to Rs. 1,250 crores and an offer for sale of 3.07 crore equity shares from existing shareholders, SoftBank, Foxconn, and Sequoia Capital amongst others.

Financials of Snapdeal Limited IPO (₹ crores)

Financial Year Total Assets Total income Total Cash and cash equivalents Profit After Tax EBITDA
September 30, 2021 683.63 252.84 94.48 (177.82) (179.19)
March 31, 2021 795.35 510.27 47.59 (126.00) (111.99)

Risk factors to consider:

The company acknowledges previous losses and indicates the possibility of facing future losses. Potential challenges include increasing delivered units, net monetary value (NMV), and acquiring new users cost-effectively to boost revenues and achieve profitability. Additionally, the company has experienced negative cash flows in recent periods, including the six months ended September 30, 2021, as well as in the financial years 2021, 2020, and 2019, with the likelihood of negative cash flows continuing in the future.

The success of our app depends on the Google Play Store and Apple App Store for distribution and promotion. Any adverse changes in their terms and conditions, violation of those terms, or a perceived violation could negatively impact our business.

How to apply to the Snapdeal Limited IPO?

You can apply for the Snapdeal Limited IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite
  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for the Snapdeal Limited IPO?

You can check the allotment status for the Snapdeal Limited IPO on the website of the Registrar and Transfer agent.