Snapdeal IPO: Snapdeal in talks to roll out IPO, plans to raise Rs 2919 crores: Reports

Joining a list of unicorn start-ups that recently entered the Indian stock exchanges, Indian e-commerce retailer Snapdeal Pvt is now set to roll out an initial public offering (IPO) to raise around Rs 3000 crore. The e-commerce company backed by SoftBank Group Corp. is considering the move to raise funds for further growth of its business. According to reports, the investors of the business are planning to put out the IPO by next year. The Snapdeal IPO news comes after the company reported losses in back to back fiscal years. However, no official confirmation has been provided in the matter.

Snapdeal looks at raising funds with IPO

Discussions for the potential Snapdeal IPO is still at the early stages and no details have been let out by Snapdeal or SoftBank. The company, which grew with the digital boom of India, could potentially go forward with the listing and thus raise funds for further growth. According to market experts, the company could need strong financial backing in the coming years to fend off competition from its director competitors.  

Based in Gurugram, Snapdeal is one of the big names in the Indian e-commerce market. However, the company has fallen off in recent years due to the emergence of new companies in the field. According to the company website, Snapdeal, founded in 2010, deals with more than 60 million products across 800 categories on its website and is active in more than 6,000 cities across the country.

Snapdeal used to be a direct competitor to Flipkart Online Services Pvt. and the Indian unit of Amazon.com Inc. before the two raced forward. The company also had an offer to merge with Flipkart four years ago, which it turned down. Flipkart then went on to sell a controlling stake to American market giant Walmart. According to reports, Flipkart is also in plans to looking to roll out an IPO. It has been a busy fiscal year for the Indian investor as public offerings of companies including Paytm, Policybazaar. CarTade Tech, Mobikwik, Zomato and e-commerce beauty startup Nykaa have all either been listed or is in the pipeline to be rolled out.

MapMyIndia files Red Herring Prospectus with SEBI

Earlier on September 1, digital mapping company MapMyIndia filed a draft red herring prospectus (DRHP) with capital market regulator SEBI to raise funds through an initial share sale. The company, which also powers Apple maps, has filed the preliminary papers to launch the initial public offering (IPO). MapMyIndia, also known as CE Info Systems, is backed by global tech company Qualcomm along with Japanese digital mapping Zenrin. With the draft, MapmyIndia which provides services to companies like Paytm, PhonePe, McDonald's, Grofers, Cars24 and Bajaj Finserv is set to join the long list of companies that announced IPOs this year.

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