Snapdeal, one of India’s most prominent value-focused e-commerce platforms, is gearing up for its Initial Public Offering (IPO). With a strong presence in Tier 2+ cities, the company is looking to expand further and solidify its place in the e-commerce market. Here’s a detailed overview of Snapdeal\u2019s IPO, its financials, strengths, risks, and more.<\/p>\n\n\n
Founded in 2007 as Jasper Infotech<\/strong>, Snapdeal began as a coupon booklet business before evolving into an online marketplace in 2012. Over the years, Snapdeal has emerged as one of India\u2019s largest pure-play value e-commerce platforms<\/strong>. The platform caters primarily to middle-income consumers<\/strong> in Tier 2 and Tier 3 cities, offering a wide range of products across categories such as fashion<\/strong>, electronics<\/strong>, home essentials<\/strong>, and personal care<\/strong>.<\/p>\n\n\n\n As of August 2021, Snapdeal had 40.15 million active users<\/strong>, with 77.01%<\/strong> of its revenue coming from repeat customers. The company generates its revenue from marketing fees<\/strong>, freight charges<\/strong>, and collection fees<\/strong> from sellers, alongside its SaaS solutions<\/strong> offered through its subsidiary, Unicommerce<\/strong>.<\/p>\n\n\n\n Snapdeal has grown substantially in the Indian e-commerce market, competing with giants like Amazon and Flipkart, and has established itself as a market leader in the value e-commerce<\/strong> sector.<\/p>\n\n\n\n Snapdeal has filed for an IPO with an estimated size of \u20b91,250 crore<\/strong>, which consists of a fresh issue<\/strong> worth \u20b91,250 crore and an Offer for Sale (OFS)<\/strong> of 3.07 crore equity shares<\/strong> by its investor SoftBank<\/strong>. The IPO is aimed at raising funds for organic growth initiatives<\/strong> and enhancing its brand presence.<\/p>\n\n\n\n The funds raised from the IPO will be used to:<\/p>\n\n\n\n Snapdeal has shown steady growth in revenue but has also faced challenges with profitability. The company’s profit after tax (PAT)<\/strong> has been negative, but its Net Merchandise Value (NMV)<\/strong> and revenue continue to grow.<\/p>\n\n\n\n While Snapdeal has faced some losses, the company\u2019s Net Merchandise Value (NMV)<\/strong> and delivered units<\/strong> continue to grow. The company\u2019s revenue, contribution margin<\/strong>, and logistics investments<\/strong> provide a strong foundation for future growth.<\/p>\n\n\n\n Snapdeal\u2019s IPO presents an exciting opportunity to invest in one of India\u2019s most prominent value e-commerce platforms. Despite facing challenges like profitability and fierce competition from giants like Amazon and Flipkart, Snapdeal\u2019s market position<\/strong> and strong growth potential<\/strong> make it an interesting option for long-term investors. With a large and growing customer base in Tier 2+ cities<\/strong> and a clear focus on AI-driven personalization<\/strong>, Snapdeal is well-positioned to capture a larger share of India\u2019s growing e-commerce market.<\/p>\n\n\n\n Before investing, potential investors should consider the risks<\/strong>, including Snapdeal\u2019s dependency on customer retention and its reliance on major app stores. However, with a clear vision for expanding its Power Brands<\/strong> initiative and omni-channel distribution<\/strong>, Snapdeal\u2019s IPO has the potential to offer strong returns for investors willing to navigate its challenges.<\/p>\n","protected":false},"excerpt":{"rendered":" Snapdeal, one of India’s most prominent value-focused e-commerce platforms, is gearing up for its Initial Public Offering (IPO). With a strong presence in Tier 2+ cities, the company is looking to expand further and solidify its place in the e-commerce market. Here’s a detailed overview of Snapdeal\u2019s IPO, its financials, strengths, risks, and more. About […]<\/p>\n","protected":false},"author":1,"featured_media":3565,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-3563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo"],"blocksy_meta":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/posts\/3563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/comments?post=3563"}],"version-history":[{"count":1,"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/posts\/3563\/revisions"}],"predecessor-version":[{"id":3564,"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/posts\/3563\/revisions\/3564"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/media\/3565"}],"wp:attachment":[{"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/media?parent=3563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/categories?post=3563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smartdelta.in\/blogs\/wp-json\/wp\/v2\/tags?post=3563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Snapdeal IPO Overview<\/strong><\/h3>\n\n\n\n
Particulars<\/strong><\/td> Details<\/strong><\/td><\/tr> IPO Size<\/strong><\/td> \u20b91,250 crore<\/td><\/tr> Fresh Issue<\/strong><\/td> \u20b91,250 crore<\/td><\/tr> Offer for Sale<\/strong><\/td> 3.07 crore equity shares<\/td><\/tr> Price Band<\/strong><\/td> Not yet disclosed<\/td><\/tr> Face Value<\/strong><\/td> \u20b91 per share<\/td><\/tr> Registrar<\/strong><\/td> Link Intime India Pvt Ltd<\/td><\/tr> Lead Managers<\/strong><\/td> Axis Capital, CLSA India, JM Financial, BofA Securities<\/td><\/tr> Category Breakdown<\/strong><\/td> – QIB: 75%- NII: 15%- Retail: 10%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Snapdeal IPO Objectives<\/strong><\/h3>\n\n\n\n
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Snapdeal IPO Financials<\/strong><\/h3>\n\n\n\n
Financials<\/strong><\/td> Q2 ended 30 September 2021<\/strong><\/td> FY21<\/strong><\/td> FY20<\/strong><\/td> FY19<\/strong><\/td><\/tr> Total Income<\/strong><\/td> \u20b9252.84 cr<\/td> \u20b9510.27 cr<\/td> \u20b9916.66 cr<\/td> \u20b9925.32 cr<\/td><\/tr> Profit After Tax (PAT)<\/strong><\/td> \u20b9-177 cr<\/td> \u20b9-125.44 cr<\/td> \u20b9-273.54 cr<\/td> \u20b9-187 cr<\/td><\/tr> EPS (Earnings Per Share)<\/strong><\/td> \u20b9-4.49<\/td> \u20b9-3.18<\/td> \u20b9-6.94<\/td> \u20b9-7.23<\/td><\/tr> Net Merchandise Value (NMV)<\/strong><\/td> \u20b9668.12 cr<\/td> \u20b9912.64 cr<\/td> \u20b91,760.99 cr<\/td> \u20b92,127.44 cr<\/td><\/tr> Delivered Units (cr)<\/strong><\/td> 1.5<\/td> 1.9<\/td> 3.5<\/td> 6.3<\/td><\/tr> Revenue<\/strong><\/td> \u20b9238.6 cr<\/td> \u20b9471.7 cr<\/td> \u20b9846.4 cr<\/td> \u20b9839.43 cr<\/td><\/tr> EBITDA<\/strong><\/td> \u20b9-170.45 cr<\/td> \u20b9-99.87 cr<\/td> \u20b9-320 cr<\/td> \u20b9-244.4 cr<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Snapdeal IPO Analysis<\/strong><\/h3>\n\n\n\n
Strengths:<\/strong><\/h4>\n\n\n\n
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Risks:<\/strong><\/h4>\n\n\n\n
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Conclusion: Is Snapdeal IPO a Good Investment?<\/strong><\/h3>\n\n\n\n