SoftBank-backed Snapdeal mulls USD 400 mn IPO: Report
E-commerce platform Snapdeal is assessing an initial public offering that could raise about USD 300-400 million, according to sources. Sources close to the development said the company is in the early stages of assessing an IPO and potential listing that could value Snapdeal at about USD 2-2.5 billion.They added that discussions are still at a preliminary stage, and no concrete decision has been taken on the matter yet. When contacted, Snapdeal declined to comment.
A stellar response to Zomato’s IPO, and a profitable listing in July has prompted a number of internet-led businesses to make a beeline for this route.A number of internet-led businesses, including Paytm, MobiKwik and PolicyBazaar have filed for IPOs while companies like Droom have stated their intent to get listed soon. Once a leading player in the Indian e-commerce space, Snapdeal has seen its fortunes falling amid strong competition from rivals Amazon and Flipkart.
Also Read: Maruti recalls over 1.81 lakh units of various models to replace faulty electrical part
In 2017, Snapdeal walked away from a potential merger deal with Flipkart and instead pursued what it called the ‘Snapdeal 2.0’ strategy to become “financially self-sustainable”. Its consolidated revenue from operations grew marginally to Rs 846.4 crore in FY20 from Rs 839.4 crore in FY19.
Snapdeal has also been investing in video, vernacular and other strategic projects, aimed at growing the online market among new users, especially those coming in from tier II cities and beyond.