The net retailer has held talks with three funding banking companies, together with JM Monetary, to gauge market curiosity for the IPO, the sources mentioned, including that the talks had been nonetheless at an early stage. Axis Capital and a minimum of yet one more funding banking agency are additionally in discussions with the corporate, the sources mentioned.
The e-tailer, backed by Japan’s SoftBank Group and China’s Alibaba, was as soon as seen as a challenger to Walmart-owned Flipkart and Amazon India however has largely focussed on promoting unbranded merchandise and decreasing its month-to-month money burn after it misplaced out within the race for the highest spot within the Indian ecommerce universe.
In 2017,
Snapdeal walked away from a merger with larger rival Flipkart.
“It (Snapdeal) has initiated the talks, however nothing is frozen but. They’re in discussions with three bankers to grasp the potential of a profitable IPO within the subsequent 12 months or so,” an individual conscious of the matter mentioned.
A spokesperson for Snapdeal declined to remark. The funding banks talked about earlier didn’t reply to ET’s queries.
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Didi has been in all kinds of bother with Chinese language authorities because it determined to go public within the US earlier this 12 months. Now it faces an existential risk.
On Friday, information wire Bloomberg
reported that Snapdeal was aiming for a valuation of as much as $2.5 billion to boost about $400 million by means of the IPO.
Earlier than Snapdeal bumped into bother, it had expressed plans to listing abroad however they didn’t materialise.
If the corporate, based by Kunal Bahl and Rohit Bansal in 2010, manages to go public at a valuation of $2 billion, it might mark a turnaround for the web retailer.
Although it was
valued at $6.5 billion during a secondary transaction in 2016 when it raised capital from buyers like Ontario Lecturers’ Pension Plan, its merger talks with Flipkart had been at a marked-down valuation of round $1 billion the following 12 months.
Snapdeal was believed to be in talks with present and new buyers to boost about $100 million at a valuation of $800 million to $1.2 billion in 2019.