AceVector Ltd, the owner of Snapdeal, has once again filed documents with SEBI to raise ₹500 crore by issuing fresh shares. This comes nearly three years after the firm shelved its IPO plan in 2022 due to market fluctuations. Snapdeal was founded by Kunal Bahl and Rohit Bansal and was a big name along with Flipkart and Amazon in the online retail space of India.
Revenue Higher, Losses Lower
In the previous year (FY24), Snapdeal’s revenue was ₹380 crore, which is slightly higher than ₹372 crore in FY23. The positive news is that its net loss reduced to ₹160 crore from ₹281 crore for the previous year. Its loss of EBITDA (which reflects core business loss) also decreased significantly by 88%. Despite that, Snapdeal is still not profitable, which is a concern for individuals who would invest in its shares.
Why This IPO Now?
This time, the entire ₹500 crore will be raised by selling fresh shares. The firm wishes to use this amount to improve its delivery and technology, obtain more working capital, and attract more customers. They had an offer-for-sale (OFS) last time also but not this time.
Tough Competition in Market
Snapdeal is now operating as a value-driven website, i.e., it offers lower-cost products to price-conscious consumers. But the battle is fierce. Giants such as Flipkart, Amazon, and even new entrants like Meesho and JioMart dominate India’s online retail space. These players splurge on quick delivery, discounts, and technology.
Investors Watching Closely
Snapdeal’s former investors are SoftBank, Bessemer, Nexus, and eBay. Most will observe this IPO to check whether Snapdeal can still scale large. Flipkart has just become powerful in Tier 2 and 3 cities, Amazon is onboarding more sellers, and Meesho is acquires small sellers. Thus, Snapdeal’s new plan and better cost control will determine whether it can compete effectively in this crowded market.
