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SoftBank-backed Snapdeal mulls $400 mn IPO

SoftBank-backed Snapdeal mulls $400 mn IPO

Snapdeal, which has SoftBank Group Corp as one of its investors, is aiming to list the company as soon as next year

Snapdeal eyes IPO by next year Snapdeal eyes IPO by next year

Indian e-commerce retailer Snapdeal is considering an initial public offering and planning to raise around $400 million. It is the latest in a long list of startups that are aiming to tap into the capital markets. Snapdeal is speaking with advisors for the public offering that could value it at as much as $2.5 billion.

Snapdeal, which has SoftBank Group Corp as one of its investors, is aiming to list the company as soon as next year, as mentioned in a report in Bloomberg. As per the news site, the discussions are still at an early stage and might not yield any positive result. Snapdeal and SoftBank have not issued a statement.

Based in Gurugram, Snapdeal was once one of the country’s top e-commerce firms, along with Flipkart and Amazon. As per the website, the company has 60 million products across 800 categories. Founded in 2010, Snapdeal delivers to more than 6,000 cities and towns.

Snapdeal was reported to be in a potential merger with Flipkart four years ago, but it fell through. Subsequently, Flipkart sold a controlling stake to Walmart. It is looking to list in the Indian bourses soon.

In just the first four months of this fiscal year as many as 12 firms have raised Rs 27,000 crore through the IPO route. However, public issues worth Rs 70,000 crore are still in the pipeline for the remainder of the fiscal year.

Hemang Kapasi, Head of Equities at Sanctum Wealth Management, told news agencies that as many as 40 IPOs are yet to come up in FY22. He added that the firms would be looking to raise Rs 70,000 crore through these public issues.

IPOs of Paytm, Mobikwik, Policy Bazaar, CarTrade Tech, Delhivery and Nykaa are expected to keep investors busy this fiscal.

Also read: Byju's eying an IPO in the next 15-18 months
Also read: Reddit seeks to hire investment bankers, lawyers for US IPO

 

Published on: Sep 03, 2021, 3:43 PM IST
Posted by: anwesha madhukalya, Sep 03, 2021, 3:31 PM IST