The site plans to raise $165 million.
Indian trading platform Snapdeal has submitted an initial public offering (IPO), Bloomberg said, citing executives at the company. The market plans to raise about $165 million.
- The deployment may take place early next year, according to media reports. Existing startup investors – SoftBank, Sequoia Capital India and Foxconn – were also able to sell their stake for $30.7 million.
- Other sponsors of this platform are Alibaba, eBay and BlackRock. In 14 rounds, Snapdeal raised $1.8 billion.
- The online platform Snapdeal was founded in 2010. The platform sells clothing, accessories, home goods to up to 500 thousand retailers. Snapdeal previously competed with Amazon and Flipkart. The Indian market has lost to the American giant: its revenue for the fiscal year ending March 2021 fell 44% to 4.7 billion rupees ($62 million). Losses increased to 1.25 billion rupees ($17 million).
- Since then, Snapdeal has shifted its focus to a “value-based e-commerce approach”. This helped the platform increase net sales for the second quarter of the fiscal year by 82% to 3.74 billion rupees ($49 million). Snapdeal had operating income of $31.9 million in the first two quarters of 2021, according to Bloomberg.
“More than 75% of our business comes from repeat customers. Over 70% of our sales are in cities and towns, and 99% of our orders come from mobile apps,” co-founder and CEO Kunal Bahl wrote on LinkedIn.
We will remind, in November, that the IPO of Indian startup Paytm is taking place. As a result of the stock placement, the company raised $2.5 billion. India experienced its biggest IPO boom since 2008, the Financial Times noted. The increase in IPOs for Indian companies comes amid restrictions on overseas listings imposed by Chinese authorities.
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