Softbank-Backed Snap deal Plans $250M IPO in ‘22

Snap deal the Indian online retailer backed by Soft bank group crop, and Alibaba Grow up holding, plans to file preliminary documents for an initial public offering of as much as $250 million in the next few weeks, according to people familiar with the matter the e-commerce giant aims to go public in early 2022 after filling the draft red hearing early 2022 after filing the draft red herring prospectus, or DRHP, the people said, asking not to be identified talking about a private matter. Snap deal, once considered the fiercest rival to and Walmart’s Flipkart in the world’s fastest-growing major online arena, plans to raise at least $200 million at a $.5 billion valuation, they added.

The company did ‘t provide comment on its fillings plans or other financial details.

Snap deal which caters mainly to the fast growing segments of smaller-city consumers somewhat neglected by larger rivals, would become the largest tech company to test investors’ appetite for IPOs after the disastrous debut of Paytm’s parent, One 97 communications. The FinTech giant has lost about 20% of its share value since its debut on November 18.

   Snap deal had considered raising about $400 million at a valuation of up to $2.5 billion, Bloomberg News reported in September. It’s now hoping instead to replicate the strong showing of fellow online commerce firms like food delivery platform Zomato and beauty retailer FSN E-commerce ventures, which owns Nykaa. Snap deal ‘s largest shareholders, which also include black Rock, Temasek and EBay, are not selling shares, the people said.

The startup co-founded by Wharton alumnus Kuna Bah in 2010 focuses on the less-affluent and les tech-savvy bulk of the population living outside India’s biggest cities.

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