Snapdeal postpones Rs 1250 crore IPO amid tech stocks sell-off

9 Dec 2022 , 01:58 PM

As per the reports of Reuters, Snapdeal has withdrawn the draft red-herring prospectus (DRHP) which it filed last year in December 2021. The company has decided to do so amid a sell-off tech stocks worldwide. Many other companies are also delaying IPOs due to stock market rout that has raised concerns over frothy tech valuations.

New Delhi-based Snapdeal was incorporated in 2010 by Wharton alumnus Kunal Bahl and Indian Institute of Technology graduate Rohit Bansal, is backed by SoftBank. The company was valued at $6.5 billion in 2016 and its popularity decrease due to increase in competition. It has recorded losses in the last three financial years between 2019 and 2021, and was hoping to raise new funds via IPO at a valuation of $1 billion.

Snapdeal currently competes with larger rivals Amazon and Walmart’s Flipkart in India’s booming e-commerce space.

Snapdeal had wanted to fund organic growth initiatives with the proceeds of its IPO, which was set to include a fresh issue of shares worth 12.5 billion rupees ($152 million) and an offer for sale of 30.8 million shares.

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