Snapdeal Ltd. (Snapdeal), India’s largest pure-play value eCommerce platform, in terms of
revenue for the Financial Year 2020, filed draft red herring prospectus for an IPO. The Offer
comprises a fresh issue aggregating up to Rs. 1,250 crore and an offer for sale of up to
30,769,600 equity shares.
Snapdeal proposes to utilise the Net Proceeds of the Fresh Issue of Rs. 1,250 crore towards
funding the following objects: 1. Funding organic growth initiatives – Rs. 900 crore; and 2.
General corporate purposes (collectively, referred to herein as the “Objects”).
In its DRHP, Snapdeal says that it is India’s largest pure-play value eCommerce platform, in
terms of revenue for the Financial Year 2020. Further, with over 200 million app installations
on Google Play Store, it is the most installed pure-play value eCommerce application and
one of the top four online lifestyle shopping destinations in terms of total app installations
in India, as of August 31, 2021. (Source: RedSeer Report, which has been commissioned and
paid for by us exclusively for the Offer) Founded in 2007, Snapdeal started its business as a
coupon booklet business, which it transformed into an online deals platform in 2010 and an
online eCommerce marketplace in 2012. Snapdeal’s value proposition meets the distinct
buying needs of ‘Bharat’ shoppers.4 (Source: RedSeer Report, which has been
commissioned and paid for by us exclusively for the Offer). Snapdeal platform was also
ranked by App Annie (a mobile market data and analytics platform) in the ‘Top Publisher
Award 2020’ as among the top 10 shopping apps in India in terms of monthly active users
(“MAUs”) for the year 2019.5
As per RedSeer Research, our total addressable market – the value lifestyle retail market in
India – is projected to grow from US$88 billion to US$175 billion between the Financial
Years 2021 and 2026, respectively, at a CAGR of 15%.
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