NEW DELHI :
E-commerce platform Snapdeal, as soon as a challenger to bigger rivals Amazon and Flipkart, on Tuesday filed draft papers for an preliminary public providing. The Kunal Bahl-led firm plans to promote new shares to boost ₹1,250 crore by the IPO, which will even see a number of high traders, together with SoftBank and Sequoia Capital, promoting a few of their shares.
Earlier this month, Mint reported about Snapdeal’s plans to file for an IPO value ₹2,000 crore.
Snapdeal’s draft IPO paperwork stated it might promote as much as ₹250 crore of shares to monetary establishments in a pre-IPO placement, which might be 20% of the recent challenge portion; in that case, the first challenge dimension will likely be decreased accordingly. In line with the paperwork, Snapdeal will use ₹900 crore of the difficulty proceeds to finance natural progress initiatives and the remaining for normal company functions.
Snapdeal was among the many early startups in India to be topped a unicorn or a startup valued at greater than $1 billion. It raised near $2 billion funding since its inception in 2007, based on VCCEdge.
Snapdeal final raised an undisclosed quantity in funding from Piramal Group govt director Anand Piramal in July 2019. In 2014, the corporate raised $627 million in a spherical of funding led by Japanese conglomerate SoftBank at a valuation of $1.68 billion.
The corporate’s largest shareholder, SoftBank, owns a 35.67% stake. By way of its affiliate, Starfish Pte Ltd, SoftBank will promote as many as 24 million shares, whereas chipmaker Foxconn’s affiliate, Great Stars Pte Ltd, will promote as much as 2.97 million shares.
Canada’s Ontario Trainer’s Pension Plan Board will promote as much as 1.36 million shares whereas Myriad Alternatives Grasp Fund will promote 0.65 million shares, and Sequoia Capital will promote 0.41 million shares, based on the DRHP. Madison India will promote as much as 500,000 shares by its Milestone Trusteeship Companies, together with a few particular person traders, together with Kenneth Stuart Glass and Laurent Amouyal (cumulatively as much as 880,000 shares).
Present traders will promote over 30 million shares in whole by the provide on the market.
Snapdeal’s different monetary backers embrace Nexus India, Temasek Holdings, OTPPB, Intel Capital, and PI Alternatives Fund. It additionally counts e-commerce giants Alibaba and eBay as its strategic backers.
The agency’s consolidated working revenues slid 44% from ₹846.4 crore in FY20 to ₹471.8 crore in FY21. Its internet losses greater than halved from ₹274.3 crore in FY20 to ₹125.4 crore in FY21.
Supply: Live Mint