SUMMARY
Snapdeal has filed its DRHP which includes offer of fresh issue of shares worth INR 1,250 Cr and 30.7 Mn equity shares
Snapdeal’s total income has dropped by 44.3% to INR 510.2 Cr in FY21
It managed to reduce its expense to INR 195.5 Cr in FY21 from INR 372.5 Cr in FY20
Kunal Bahl-led ecommerce giant Snapdeal has filed its draft red herring prospectus (DRHP) with the market regulator SEBI. Snapdeal’s initial public offer includes fresh issue of shares worth INR 1,250 Cr, which Inc42 had exclusively reported on December 8, 2021. The offer also includes an offer for sale of upto 30,769,600 (~30.7 Mn) equity shares, meaning the startup’s existing investors will be selling some portion of their equity shares during the public listing.
Snapdeal may also likely in consultation with BRLMs (book running lead manager) raise upto INR 250 Cr which will not exceed upto 20% of the fresh issue portion. Snapdeal’s BRLMs are Axis Capital, BofA Securities India Limited, CLSA India and JM Financial Limited.
Between April and September of FY22, Snapdeal posted a total income of INR 252.8 Cr which comprised revenue from operations worth INR 238.5 Cr and INR 14.2 Cr under other income.
During the same period, the startup’s total expense was INR 429 Cr, leading to a total loss of INR 177 Cr (after tax).
For FY21, a year when ecommerce was thriving as more and more people shifted to ordering online in the backdrop of pandemic, Snapdeal’s total income was pegged at INR 510.2 Cr, a 44.3% fall from INR 916.6 Cr it posted between April 2019 – March 20 (FY20). Snapdeal has posted a total income of INR 925.3 Cr in FY19.
The startup in FY21, incurred a total expenditure of INR 636.3 Cr, a 47.4% drop from INR 1,211 Cr, Snapdeal posted in FY20.
In FY21, it managed to reduce its marketplace expense to almost half from its previous financial year to INR 195.5 Cr from INR 372.5 Cr. The ecommerce marketplace also reduced its other expenses by 63% in the current financial year from INR 625.3 Cr to INR 228.5 Cr.
The Delhi-based ecommerce startup has also reduced its restated loss by 54% in FY21. Snapdeal witnessed a total loss after tax worth INR 125.4 Cr for the year ended March 31, 2021. In FY20, it posted a loss of INR 273.5 Cr
The startup also has a liability worth INR 27.02 Cr.
Snapdeal has now joined the lists of startups including Delhivery and OYO who are awaiting for their DRHP approval.
Founded by Kunal Bahl and Rohit Bansal in 2010, to take on ecommerce giants Flipkart and Amazon, Snapdeal has to date received over $1.5 Bn from marquee investors such as SoftBank, Foxconn Technology Group, Chinese conglomerate – Alibaba Group, and Canada’s Ontario Teachers’ Pension Plan.
Snapdeal claims to have 40.15 Mn monthly active users with over 200 Mn app installation. It boasts of having 50.37 Mn customers shopped on its site since FY19, and has 14.82 Mn annual transacting customers. It covers 96.65% pincode across the country and has clocked a total of INR 374 Cr worth of net merchandise value in Q2 of FY22.
