Sources close to the matter have reported that Snapdeal is looking to float its IPO with a $250 million offer. The company is choosing to go public after a stellar year for IPOs in 2021. Let’s get down to the details of the story.
Snapdeal, set up by Wharton Alumnus Kunal Bahl in 2010 was a rival to Flipkart and Amazon. However, the company began to focus more on delivering its products to the middle-class and less affluent persons outside India’s larger cities.
While Snapdeal had emerged as one of the leading e-commerce providers, the spell did not continue for long. It began to lose ground to companies like Flipkart and Amazon.
Back in 2017, this company’s plans for a potential merger with Flipkart fell through. The deal had been keenly overseen by SoftBank, but it failed. Had the deal gone through it would have made the combined Flipkart-Snapdeal a worthy contender of Amazon in this nation.
After the proposed merger fell through in 2017, SoftBank, the Japanese investor, led a funding round for Flipkart, which proposes to launch its IPO. Moreover, Snapdeal has stiff competition from the Reliance conglomerate, which is also looking to enter the market as a competitor to Flipkart and Amazon.
Ans. The founders of Snapdeal are Kunal Bahl and Rohit Bansal.
Ans. SoftBank, BlackRock, Foxconn, Alibaba, Temasek, eBay Inc., Intel Capital, Bessemer Venture Partners, Premji Invest, Mr. Ratan Tata, among others, are some of the investors in Snapdeal.
Ans. Snapdeal was founded on 1 February 2021.
Ans. SoftBank will need to sell a small portion of its stake to come below the 25% shareholding. Presently, SoftBank holds a 35.67% stake in this company.
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