AceVector, the parent company of Snapdeal, raised ₹420 crore through its initial public offering (IPO) which closed on September 29. The IPO included a fresh issue of ₹287 crore and an offer for sale worth around ₹133 crore, with shares priced between ₹30 and ₹32. The subscription for the IPO was 4.93 times, and AceVector is set to debut on the stock market this Monday, according to inc42.com.
The IPO process began on September 25 and attracted moderate investor interest compared to Snapdeal's earlier market standing. Once valued at $6.5 billion and backed by investors such as SoftBank Group, Alibaba Group, and Foxconn, Snapdeal has shifted its focus from competing broadly in ecommerce to targeting affordable fashion, home, and beauty products for Tier II and Tier III cities in India. AceVector’s portfolio also includes Unicommerce, an ecommerce enablement software business, and Stellaro Brands, its consumer brands arm, which contribute to its revenue streams, inc42.com reported.
Snapdeal’s repositioning reflects the intensifying competition in India’s ecommerce sector, where Amazon and Flipkart have invested heavily to dominate the market. By focusing on value commerce and affordable goods, Snapdeal aims to capture a niche segment of price-sensitive consumers. The IPO proceeds will support AceVector’s efforts to strengthen its market position amid this competitive landscape, which has seen Snapdeal scale back its ambitions from its earlier peak valuation and broader market aspirations, inc42.com noted.
AceVector’s IPO marks a significant milestone as the company transitions to a publicly traded entity. The shares will begin trading on the stock exchange this Monday, providing investors with an opportunity to evaluate the company’s strategy and financial performance in the evolving ecommerce sector, according to inc42.com.