Snapdeal IPO Upcoming
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About Snapdeal
Snapdeal Limited is an online e-commerce 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.
Financials of Snapdeal
Risks
- 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.