Snapdeal, an e-commerce company, headquartered in Delhi, has registered for IPO (initial public offering) on Tuesday, similar to quite a few firms which have entered the public market in India this year.
In its draft prospectus, the firm said that it is going to give new shares of $165 M worth. Few of its present investors, too, are planning to sell around 30.7 M secondary shares; these include Sequoia Capital India, Foxconn, and SoftBank.
Snapdeal, which used to compete with Flipkart and Amazon at some point, has now switched its attention to cater to customers in smaller towns and cities, owing to the fact that it has lost its market share in the past few years considerably.
Snapdeal said that over 50M unique consumers have shopped on its platform at least once since April 2018. Chief executive and co-founder at Snapdeal Kunal Bahl write in his LinkedIn post that more than 75% of their business comes from repeating consumers. He also posted that more than 70% of sales come from further than Tier 2 cities and towns and about 99% of the orders come in through mobile phones.
The business covers around 96% of pin codes in India. He also wrote that their users connect and browse with them in seven different languages, apart from English and Hindi. Building Snapdeal 2.0, for him, was like coming up with all the needed underlying capabilities in order to cater to the value-savvy users, while staying within the bounds of good economics and swiftly moving with decisive and bold steps, he later added.
The change of approach was observed after months-long discussions to merge with Flipkart, which did not happen in 2017.
In its prospectus, Snapdeal said that it has produced an operating revenue of about $31.9 M in just six months, which ends in September.