Snapdeal wants to look at this as an opportunity to allow retail investors to become a part of its expansion story in tier-2, 3, and 4 markets. It is eyeing an initial public offering to raise $350-400 million, and is looking for a valuation of $2-2.5 billion. “Snapdeal is a reinvention story and they want to take the value story to consumers in Bharat,” said a source privy to the discussion. The sources also said that JM Financial, Axis Bank, and Bank of America have been roped in as the bankers to run the mandate.
If the company decides to proceed with the IPO process, it will join the ranks of other start-ups that are looking to join the listing frenzy. In the first four months of this fiscal, about 12 companies have raised as much as Rs 27,000 crore through listings.
Co-founders Kunal Bahl and Rohit Bansal put in place a plan called Snapdeal 2.0 in 2017 after talks of a merger with Flipkart fell through. According to a recent report by Kearney, the value e-commerce segment – defined as a category that caters to customers who focus on affordable products – is expected to grow to about $20 billion by 2026 and $40 billion by 2030 in India.
As part of its efforts to deepen the availability of value merchandise online, Snapdeal has in the last year added more than 5,000 manufacturer-sellers on its platform
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