Snapdeal IPO

About Snapdeal IPO

After shelving its IPO plan earlier, AceVector, the parent company of Snapdeal, has filed papers with market regulator Sebi for its initial public offering via the confidential route. The total issue size will comprise of a fresh issue and an offer for sale. The fresh issue size has been cut almost to a fourth from ₹1,250 crores originally to just about ₹300 crore currently; citing adverse market conditions.

Founded in 2010, Snapdeal- the flagship marketplace of AceVector Limited, the IPO issuing entity, was once a major player in the Indian e-commerce market. Was once a major player in the Indian e-commerce market. However, it lost momentum and was on the verge of a shutdown at one point. However, thanks to its shift to value ecommerce, it gradually came back on track. The time of the IPO is yet to be confirmed and is expected tentatively in the second half of 2026.

Objectives of Snapdeal IPO

Main objectives of the IPO are as under.

• Funding organic growth initiatives of the company
  
• General corporate purposes
  
• Benefits of IPO listing and better visibility
  
• Creation of a public market and market-based valuation of the company
  

Industry Outlook

According to a joint report by ANAROCK and ET Retail, India's e-commerce industry is projected to reach USD550 billion by 2035. The growth will primarily be propelled by increasing internet penetration, smartphone adoption and enhanced digital payment infrastructure, along with key government initiatives like Digital India. Also, increasing the participation of consumers from smaller cities is a key driver of this expansion.

Company Information

Once among India's leading e-commerce marketplaces, Snapdeal has now adopted a more value-conscious approach, with a tier II and tier III-focused strategy. It has also built Stellaro Brands, which happens to be a private label portfolio focusing on affordable fashion and home categories.

Strengths of Snapdeal

• Largest pure play value eCommerce platform
  
• Personalized buying journey driven by artificial intelligence prompts
  
• Asset light model promises rapid growth in ROA in the future
  
• Multi-lingual customer support, allowing easy onboarding
  

Risks of Snapdeal IPO

• Intensely competitive market
  
• Total reliance on online resources
  
• Cost of customer acquisition continues to be a big risk factor for the company
  
• Company continues to make losses despite being in business for over 15 years
  
• There is the risk of online commerce growth plateauing at some point in the future
  
• It is a data sensitive business and cyber security remains a major risk factor
  
• A big risk factor is the ability to change its offerings with changing tastes, and that is complex
  
• Online commerce is a highly competitive space and in a state of constant flux
  
• Economic downturns, wars etc an hit consumer discretionary spending
  

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

IPO Registrar: MUFG Intime India Private Limited
Book Running Lead Managers: IIFL Capital Services Limited and CLSA India Private Limited

Business Model

The primary revenue streams of Snapdeal include marketing services, e-commerce enablement and other ancillary sources. It has a marketplace business model linking consumers with sellers. It charges sellers for using its platform and also earns revenue from advertising.

Company Growth Trajectory

The operating income of Snapdeal stood at ₹379.76 crores in FY 24, up by 2.1% from ₹371.96 crores in FY 23. The firm's improved performance was visible in the 43.2% reduction of loss to ₹160.38 crores in FY24. Its total expenditure dropped by 21.4% to ₹540.76 crores in FY 24 from ₹687.93 crores in FY 23. Between FY23 and FY25, while the top line has been largely flat, the losses have narrowed meaningfully in the last 3 years.

Market Position

As per estimates, Snapdeal has over 40 million monthly active users and over 550 million monthly page views with an exclusive focus on value selection. The firm earns more than 77% of its revenues from repeat customers, with 86% of its orders coming from outside metro cities.

How to Check Allotment Status of Snapdeal IPO?

1. Visit the Registrar’s Website

Visit the registrar’s website and find out the IPO allotment status link. Click on it and enter either your PAN, DP ID or application number. Click on ‘Submit’ button to know the status.

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of Snapdeal IPO. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO bid verification page, enter:

• Company name from dropdown
  
• Application number
  
• PAN
  

Then click 'Submit' to know the allotment status.

3. Check on the BSE Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
  
• Choose 'Snapdeal' in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click 'Search’ to know allotment status
  

How to Apply for the Snapdeal IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.