Snapdeal IPO: Acevector will bring fresh issue of Rs 300 crore, exit of SoftBank and Nexus begins

Acevector Limited, the parent company of e-commerce platform Snapdeal, has submitted new documents to SEBI regarding its IPO. According to the news (IPO Filing), the company is preparing to enter the market with a fresh issue of about ₹ 300 crore. Apart from this, existing investors will sell about 6.3 crore shares under Offer For Sale (OFS). It is being told that big names like SoftBank are also participating in OFS, hence this issue is being considered as the “official entry” of the company.

Where will the Fresh Issue money go (Use of Funds)

The company will mainly spend the money raised through Fresh Issue on tech platforms, operations and expansion. According to the news (Fresh Issue), this will include sectors like logistics improvement, supply chain and technology upgrade. The company believes that in the coming times, these sectors will play a big role in expanding its business.

Who is selling shares in OFS (OFS Structure)

Under OFS, existing shareholders are reducing their stake. According to the news (OFS Plan), big investors like SoftBank and Nexus Venture Partners are now taking partial exit from Snapdeal. The company says that through OFS, shareholders will get liquidity, while the company will have additional capacity for further investment.

IPO price and date will be decided later (Regulatory Update)

The price and date have not been decided yet in the documents submitted with SEBI. According to the news (SEBI Approval), both of these will be announced only after the approval of SEBI. Market experts believe that the interest of investors in the e-commerce sector had decreased a bit in the recent past, hence Snapdeal’s IPO can also activate the sentiment a bit.

Snapdeal’s beginning and journey till now (Company History)

Snapdeal was started together in 2010 by Kunal Bahl and Rohit Bansal. At that time e-commerce was growing rapidly in India. According to the news (Snapdeal History), the company showed considerable growth in the initial years, but after the entry of Amazon and Flipkart, competition increased. After this the company sold about 20% stake to Flipkart and started restructuring its operations.

Why is SoftBank reducing stake (Investor Exit)

SoftBank is a major early-stage investor in Snapdeal. Now he is reducing his holding through OFS. According to the news (SoftBank Exit), it is also being considered as a kind of exit investor. SoftBank wants to rebalance its global investments, so OFS is being said to be the logical way for this.

Now which markets will the company focus on

Acevector is now running Snapdeal independently. According to reports (target market), the company is now focusing on the increasing retail demand in Tier-2 and Tier-3 cities. Reports suggest that Snapdeal is moving from a high-discount model to a profitability-based model.

Can the picture change after IPO?

The company hopes that the IPO will improve both its valuation and financial capacity. According to reports (IPO Expectation), the e-commerce industry may pick up pace again between 2025 and 2026. However, competition and regulation will remain challenges for the company.