E-commerce platform Snapdeal on Tuesday 21 December 2021 filed a preliminary document with market regulator securities and exchange board of India (SEBI) for initial offering through which it plans to raise ₹1,250 Crores in Mumbai. The public issue comprises fresh insurance of equity shares worth ₹1,250 Crores and an offer for sale of 3.97 Crores according to draft DRHP.
E-commerce platform Snapdeal was started by Rohit Bansal and Kunal Bahl in 2007 as a coupons booklet. In 2010 they transform it into online deals and then further transformed into an online e-commerce market in 2012. Soft bank of Japan is the major shareholder and backer of the company who holds 35.41 shares and company founders Rohit Bansal and Kunal Bahl hold on 20.28 percent of shares in the company.
Snapdeal is the largest revenue generator e-commerce platform in the year 2020 with 200 million installations of the app from google, it has become the fourth largest online lifestyle market in India. Snapdeal is the e-commerce lifestyle market that sells products like shop, home décor, men and women fashion, gym products and many other household items.
According to the draft, DRPH e-commerce ventures states that it plans to increase the market size of value lifestyle from $88 million in 2021 to $148 billion in 2026 which is 15 percent according to CAGR. The company also projected that it is expected to grow market influence from 140 million users to 345 million users by 2026. E-commerce ventures are worth 7.4 billion in 2021 which they are planning to increase to worth $39.4 billion in 2026.
Public issues comprise fresh insurance of equity shares worth ₹1,250 crores and an offer for sale of 3.07 crore equity shares according to DPHR.
Snapdeal founders Kunal Bahl and Rohit Bansal decided not to sell any of their IPO holdings.
They are selling OFS starfish, ipes wonderful glass, sequoia, Kenneth Stuart glass, myriad opportunities master fund Ontario teacher pension plan board, Lauren amoral, and milestones trusteeship services.
When the company faces a struggle during its rivalries with amazon and Flipkart, company stakeholders soft bank and black rock force founders to merge with a deal of amazon. But founders Kunal Bahl and Rohit Bansal do not want to proceed with the deal so they opt for a different path for them. They started Snapdeal strategy 2.0 to become financially sustainable.
They decided to shift their focus to Bharat. The nonurban, non-fluent English speakers, the nontechnical population of India. While amazon focuses on big city buyers selling big tickets, games like high price smartphones, high price electronics. Snapdeal mostly sells items like mats, tummies, household items. 90% of items are below the rate of 1000 rupees and it covers 80% of the urban population. It receives 82% of these orders from outside the urban areas.
Snapdeal files IPO papers to raise ₹1,250 Crore..Snapdeal was started by Rohit Bansal and Kunal Bahl in 2007..It receives 82% of these order