01 December 2021, Mumbai:
Snapdeal plans to file preliminary documents for an initial public offering in the next few weeks. The plan is to raise at least $200 million at a $1.5 billion valuation. The e-commerce giant aims to go public in early 2022 after filing the draft red herring prospectus. It joins a growing list of startups preparing to tap capital markets as the nation’s digital economy booms and is hoping to replicate the strong showings of fellow online commerce firms. Snapdeal caters mainly to middle-class consumers.
Snapdeal is backed by SoftBank and Alibaba. Founded in 2010 Snapdeal is India’s leading value e-commerce platform that has over the years helped Indian e-commerce grow beyond just brands and urban users. Nearly 80 per cent of Snapdeal’s users come from non-metro locations highlighting its deep reach across the length and breadth of the country. It hosts a wide selection of good quality, value-priced merchandise across fashion, home, beauty and personal care, general merchandise, and other categories. With more than 200 million app installations, it is one of the top online shopping destinations in India. Snapdeal’s fashion sales grew by 210 per cent in the first six months of 2021. The growth was driven by users replenishing their wardrobe to meet work-from-home clothing needs.
