Ahmedabad-based etailer for regional goods Salebhai has filed a Draft Prospectus (DP) with the SME platform of BSE Ltd.
With this, the startup becomes the first B2C ecommerce startup looking to raise money through public route at an early stage.
The startup expects its IPO to take place in July for which it is issuing 22,59,600 equity shares, offering 26.58% of the company’s equity in the market, and will be listed on the Bombay Stock Exchange’s (BSE) SME Platform.
It is looking to raise $3.48 Mn (INR 23.73 Cr) and use it towards growing the company through increased customer acquisition, improved IT platform, the addition of more authentic sellers as well as product categories, and make the customer experience even smoother and effortless.
Commenting on the IPO, Vishwavijay Singh, Co-founder, SaleBhai, said, “We started this company to address not just a need, but a sense of belonging. Our mission – to take people back to their roots for just a moment and connect to their roots – has now helped us build a commercially successful company that is going public. We are proud of this moment, and look forward to having our company listed as we continue getting bigger and stronger.”
SaleBhai was launched in September 2015 by Vishwa Vijay Singh and Purba Kalita. The startup aims to be a discovery platform for diaspora (migrant) communities to source authentic products from their native place.
It enables people living away from home order a range of specialities directly from their hometowns and by doing so, it is becoming a discovery platform for all unique items across India.
The list of products includes sweets, chocolates, bakery items, spices, dry fruits, beverages, pickles, handicrafts, paintings, among others. These products are supplied globally from a vendor base of 400 from over 100 Indian cities.
Vishwa Vijay had earlier told Inc42 that the portal operates solely on the marketplace model, and has low operational costs. Also, he claimed to have 22% repeat customers on the platform.
The startup has raised more than $1.5 Mn capital from investors like Times Group’s Brand Capital and 71 HNIs among others.
In the space, SaleBhai competes with the likes of Petoo.in among others.
India’s ecommerce industry is expected to touch $200 Bn by 2026, as per a report by Morgan Stanley. With a few players in the space catering to native foods, SaleBhai has a huge market to address. The IPO, if it goes through, can give a major boost to its plans for expansion and growth.