Snapdeal is the fifth tech firm in India which has deferred its IPO plans. (File)
New Delhi:
E-commerce main Snapdeal has shelved its $152-million IPO (preliminary public supply) plans amid a rout in tech shares within the prevailing unfavourable market circumstances.
Snapdeal instructed NDTV that the corporate is withdrawing the IPO papers which had been filed a yr in the past with the Securities and Trade Board of India (SEBI).
Softbank-backed Snapdeal could rethink its IPO plans relying on the corporate’s want for capital and market circumstances.
It has been a roller-coaster experience prior to now few months for new-age tech firms. The shares of most of those firms have nosedived as recession fears gripped the market amid the Russia-Ukraine warfare. A sequence of price hikes by the Fed Reserve to rein in inflation additional dampened investor sentiment. Massive-scale tech layoffs additional accentuated the issues.
Snapdeal’s rival in India, Amazon, for instance, is prone to present the door to workers from numerous departments. Amazon employs greater than 1.6 million globally.
Then again, Walmart-promoted Flipkart India had reported that its loss widened to over Rs 7,800 crore for the monetary yr 2021-2022, information company PTI reported.
The Indian e-commerce market is ever-expanding and lots of corporations are eyeing a bigger piece of this multi-billion-dollar market. Based by Kunal Bahl and Rohit Bansal in 2010, Snapdeal was an early hen within the e-commerce house however the fierce competitors noticed cash-rich Amazon and Flipkart surge forward.
Snapdeal is the fifth tech firm in India which has deferred its IPO plans. Earlier, start-ups like Pharmeasy, boAt, Droom, and Appameya Engineering had deferred their plans for popping out with a public supply in troublesome market circumstances.
TPG and Prosus-funded PharmEasy had filed papers for a $760-million IPO. Wi-fi earphone producer boAt Way of life known as off IPO plans in October this yr.
These new-age firms determined to defer their IPO plans amid a hammering of new-age shares out there. These embrace Paytm Nykaa and Zomato, the poster boys within the start-up universe. As these shares discover themselves on the receiving finish of investor fury, buyers have misplaced substantial wealth.
Market analysts have noticed that poor investor sentiment round new-age shares can solely be partially attributed to geo-political conditions. The bigger concern is concerning the profitability of those firms.
