New Delhi E-commerce platform Snapdeal, once a challenger to big rivals Amazon and Flipkart, on Tuesday filed draft papers for initial public offering. Kunal Bahl-led company plans to sell fresh shares to raise 1,250 crore through the IPO, in which several top investors including SoftBank and Sequoia Capital will sell some of their shares.
Earlier this month, Mint reported on Snapdeal’s plans to file for an IPO. 2,000 crores.
Snapdeal’s draft IPO documents say it could sell 250 crore shares to financial institutions in pre-IPO placement, which will be 20% of the fresh issue share; In that case, the size of the primary issue will be reduced accordingly. According to the documents, Snapdeal will use 900 crore of the issue is financed for organic growth initiatives and the rest for general corporate purposes.
Snapdeal was one of the earliest startups in India to be crowned unicorn or startup, valued at over $1 billion. It has raised nearly $2 billion in funding since its inception in 2007, according to VCCEdge.
Snapdeal last raised an undisclosed amount in funding from Anand Piramal, executive director of Piramal Group, in July 2019. In 2014, the company raised $627 million led by Japanese conglomerate SoftBank at a valuation of $1.68 billion.
SoftBank, the largest shareholder of the company, holds 35.67% stake. Through its affiliate, Starfish Pte Ltd, SoftBank will sell 24 million shares, while chipmaker Foxconn’s subsidiary, Wonderful Stars Pte Ltd, will sell 2.97 million shares.
According to the DRHP, the Ontario Teachers Pension Plan Board of Canada will sell 1.36 million shares, while Myriad Opportunities Master Fund will sell 0.65 million shares, and Sequoia Capital will sell 0.41 million shares. Madison India will sell 500,000 shares through its Milestone Trusteeship Services, along with a handful of individual investors including Kenneth Stuart Glass and Laurent Amoyal (up to 880,000 shares in total).
Existing investors will sell a total of more than 30 million shares through the Offer for Sale.
Other financial backers of Snapdeal include Nexus India, Temasek Holdings, OTPPB, Intel Capital and PI Opportunities Fund. It also counts e-commerce giants Alibaba and eBay as its strategic backers.
Firm’s consolidated operating revenue fell 44% FY20 to . 846.4 crore in 471.8 crore in FY 2011. more than half of its net loss FY20 to . 274.3 crore in 125.4 crore in FY 2011.
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