BENGALURU (BLOOMBERG) – Snapdeal, the Indian online retailer backed by SoftBank Group and Alibaba Group Holding, plans to file preliminary documents for an initial public offering of up to US $ 250 million (S $ 341 million) over the next few months. weeks, according to people familiar with the subject.
The e-commerce giant aims to go public in early 2022 after the draft red herring prospectus, or DRHP, was filed, the people said, asking not to be identified to talk about a private matter.
Snapdeal, once considered the fiercest rival of Amazon.com and Walmart’s Flipkart in the world’s fastest growing online arena, plans to raise at least US $ 200 million for a valuation of 1 , 5 billion US dollars, they added.
The company did not immediately provide a comment on its filing plans or other financial details.
Snapdeal, which primarily caters to the fast-growing segment of small-town consumers somewhat overlooked by big rivals, would become the largest tech company to test investor appetite for IPOs after the company’s disastrous debut. mother of Paytm, One 97 Communications.
The fintech giant has lost around 20% of its stock value since its debut on November 18. Snapdeal had planned to raise around $ 400 million for a valuation of up to $ 2.5 billion, Bloomberg News reported in September. He now hopes to replicate the strong performance of other e-commerce companies such as food delivery platform Zomato and cosmetics retailer FSN E-Commerce Ventures, which owns Nykaa.
Major Snapdeal shareholders, which also include BlackRock, Temasek Holdings and EBay, don’t sell shares, the people said.
The start-up co-founded by former Wharton student Kunal Bahl in 2010 focuses on the less affluent and less tech-savvy part of the population living outside India’s biggest cities. It goes against the trend established by Amazon and Flipkart by not reaching out to buyers in big cities and avoiding big-ticket items like high-priced electronics.
It has grown into one of the country’s leading e-commerce providers, but has lost ground to its biggest rivals. In 2017, he pulled out of a possible merger with Flipkart that would have united the 2 local ecommerce companies against Amazon, a deal SoftBank had advocated. The Japanese investor then turned to lead a fundraiser for its big rival Flipkart.
Since then, Walmart has bought a controlling stake in Flipkart, which is now moving towards its own IPO. And new entrants such as Mukesh Ambani’s Reliance conglomerate threaten to further disrupt the industry.
Snapdeal will follow a group of Indian companies looking to raise more than US $ 1 billion through IPOs in December.
Warburg Pincus-backed drugstore chain MedPlus Health Services and Healthium Medtech, a surgical instrument maker controlled by buyout company Apax Partners, are among the candidates for listing to sell shares next month, according to people with knowledge of the subject. Others include Shriram Properties and wedding apparel maker Vedant Fashions.