BENGALURU: E-Commerce company Snapdeal on Tuesday filed its draft red herring prospectus (DRHP) with markets regulator SEBI for an initial public offer. Backed by SoftBank Group, the company plans to raise Rs 1,250 crore through the sale of new shares.
Of the total net proceeds of the Fresh Issue, the company plans to utilise Rs 900 crore towards funding its growth initiatives and the rest towards general corporate purposes.
In its DRHP, the company said that it is the country’s largest pure-play value e-commerce platform in terms of revenue for the financial year 2020. The company recorded losses in the last three financial years as well as six months ended September 30, 2021.
Its restated loss for the six months ended September 30, 2021 and for FY 2021, 2020 and 2019 was Rs 177.077 crore, Rs 125.44 crore, Rs 273.54 crore and Rs 187.029 crore, respectively.
The company’s total income for the period ended September 30, 2021 was about Rs 253 crore and for the period ended March 31, 2021, it was over Rs 510 crore. Its total expenses were Rs 429 crore, as of September 30, 2021.
The company doesn’t have any outstanding indebtedness and its provision for doubtful debts and advances stood at Rs 8.08 crore as on September 30, 2021, Snapdeal said in its DRHP.
As per RedSeer Research, the company’s total addressable market is projected to grow from $88 billion to $175 billion between 2021 and 2026 at a CAGR of 15%.
In its DRHP, the company said that the country’s Value e-commerce market was worth $7.4 billion in the financial year 2021, and projected to reach approximately $39.4 billion by the financial year 2026.