Snapdeal GMP IPO Details
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Founded in 2007, Snapdeal was once a major competitor to companies like Amazon and Flipkart. It was India’s largest value e-commerce platform in terms of revenue in FY20 and one of the top four online lifestyle shopping destinations in terms of app installations in FY21. The company started as a coupon booklet business and later transformed into an online deals marketplace in 2010. In 2012, it further evolved into an online e-commerce marketplace offering a wide range of products including fashion, home and general merchandise, beauty and personal care, and more.
As of August 31, 2021, Snapdeal had 40.15 million monthly active users and a customer base of 50.37 million since 2019. Repeat customers accounted for 77.01% of their business during that time, and they have received a rating of 4.5 on the Google Play Store. The company had 635 employees as of September 30, 2021. Snapdeal has been focusing on meeting the demand in Tier 2 cities of India, aiming to penetrate that market segment effectively.
Snapdeal generates its revenue primarily from marketing fees and freight and collection fees charged to its sellers. In 2021, they introduced the cash on delivery feature to enhance customer convenience. The company’s subsidiary, Unicommerce eSolutions Pvt Ltd, provides Software as a Service solutions to facilitate e-commerce operations for traditional brands, D2C brands, and retailers.
Snapdeal recently launched the “Power Brands” initiative, which aims to build a network of suppliers offering high-quality products at affordable prices. Since its launch, 13 “Power Brands” have been created under this program.
Objective of the issue:
- Rs.900 crore will be allocated towards funding organic growth initiatives.
- The remaining proceeds will be utilized for general corporate purposes.
Snapdeal IPO Details
Snapdeal Ltd has filed for an initial public offering (IPO) valued at approximately Rs.1,250 crore. The IPO consists of a fresh issue of shares amounting to Rs.1,250 crore, as well as an offer for sale of up to 30,769,600 equity shares. Softbank, one of the major stakeholders, plans to sell up to 30.77 million equity shares in the offer for sale. Additionally, Snapdeal is considering a pre-IPO placement worth Rs.250 crore, which will be deducted from the fresh issue. The book running lead managers for the IPO are Axis Capital Ltd, BofA Securities India Ltd, CLSA India Pvt Ltd, and JM Financial Ltd.
Snapdeal Ltd Company Financial Status
Particulars(In Rs cr) | Q2 ended 30 September, 2021 | FY21 | FY20 | FY19 |
---|---|---|---|---|
Total Income | 252.84 | 510.27 | 916.66 | 925.32 |
PAT | -177 | -125.44 | -273.54 | -187 |
EPS (In Rs) | -4.49 | -3.18 | -6.94 | -7.23 |
Particulars(In Rs cr) | Q2 ended 30 September, 2021 | FY21 | FY20 | FY19 |
---|---|---|---|---|
Total Assets | 683.63 | 795.35 | 925.30 | 1,359.7 |
Total Borrowings | – | – | – | 13.6 |
Equity Share Capital | 39.44 | 39.44 | 39.44 | 39.44 |
Particulars(In Rs cr) | Q2 ended 30 September, 2021 | FY21 | FY20 | FY19 |
---|---|---|---|---|
Net cash flow from operating activities | -110.14 | -91.5 | -371.84 | -34.75 |
Net cash flow from/used in investing activities | 159 | 140.75 | 362.9 | -0.12 |
Net cash used in financing activities | -1.98 | -4.12 | -2.92 | -33 |
Key performance indicators:
Particulars(In Rs cr) | Q2 ended 30 September, 2021 | FY21 | FY20 | FY19 |
---|---|---|---|---|
NMV | 668.12 | 912.64 | 1,760.99 | 2,127.44 |
Delivered units (cr) | 1.5 | 1.9 | 3.5 | 3.4 |
Revenue | 238.6 | 471.7 | 846.4 | 839.43 |
Contribution margin | 105.6 | 276.2 | 473.84 | 479.85 |
EBITDA | -170.45 | -99.87 | -320 | -244.4 |
Snapdeal IPO Registrar
Name: Link Intime India Private Limited
Phone number: +91 022 4918 6200
Email ID: snapdeal.ipo@linkintime.co.in
Snapdeal IPO Prospectus
View documents submitted by company in filing to understand more details about them.
Snapdeal IPO Key Points
Strengths:
- Snapdeal is the largest pure-play value e-commerce platform in India in terms of revenue in FY20. It is also among the top four most installed applications in the online lifestyle shopping sector in the country as of August 31, 2021. The platform has attracted 50.37 million customers since 2019.
- The platform offers a wide range of products at affordable prices. Snapdeal’s sellers stay updated with market trends and regularly update their product offerings.
- Through the use of artificial intelligence and machine learning, Snapdeal provides a personalized and discovery-led buying experience for each customer.
- Snapdeal has an asset-light and technology-driven logistics system. They rely on contracted third-party logistics for pan-India delivery.
- The platform provides multi-lingual support to cater to new internet users.
Risks:
- Snapdeal may face challenges in acquiring and retaining users in a cost-effective manner, which could hinder the company’s growth and revenue increase.
- Failure to increase the number of delivered units and net merchandise value (NMV) may lead to future losses and hinder the company’s ability to generate profits and grow.
- The company’s success is highly dependent on the growth of the e-commerce industry in India and the ability to adapt to changing customer preferences.
- Snapdeal relies on Google Play Store and Apple App Store for app promotion, and any violation of their contract terms could have a negative impact on the business.
Snapdeal IPO FAQs
How can I apply for the Snapdeal IPO?
To apply for the Snapdeal IPO, follow the steps below:
1. Log in to your chosen broker or online platform for IPO applications and navigate to the current IPO section.
2. Select the Snapdeal IPO from the available options.
3. Enter the desired number of lots and the price at which you wish to apply.
4. Provide your UPI ID and click on the submit button to place your bid with the exchange.
5. You will receive a notification to authorize the blocking of funds in your UPI app. Follow the instructions to complete the process.
When will the Snapdeal IPO open and close?
The dates for the opening and closing of the Snapdeal IPO have not been announced yet.
What is the lot size and minimum investment required for the Snapdeal IPO?
The lot size and minimum investment details for the Snapdeal IPO will be provided at the time of its announcement.
What is the price band for the Snapdeal IPO?
The price band for the Snapdeal IPO has not been disclosed yet.
What is the size of the Snapdeal IPO?
The size of the Snapdeal IPO has not been revealed yet.
How many bids can I place for the Snapdeal IPO?
You can place up to three bids for a single application.
Can I place bids at different times during the IPO subscription period?
No, all bids must be placed together. If you wish to add an additional bid, you will need to delete your existing application and reapply.
When will Snapdeal shares be credited to my demat account?
The date for crediting Snapdeal shares to your demat account will be announced later.
On which exchanges will Snapdeal shares be listed?
Snapdeal shares will be listed on both NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
When will Snapdeal shares be listed on the exchanges?
The listing date for Snapdeal shares has not been announced yet.