AceVector, Snapdeal’s Parent Company, Set to File DRHP for ₹500 Cr IPO, Report Says

AceVector, the parent company of ecommerce platform Snapdeal, is said to be getting ready to submit its draft red herring prospectus (DRHP) for an IPO worth INR 500 Cr.

Snapdeal, established in 2010 by Bahl and Bansal, is an online marketplace that used to be a significant competitor in the Indian ecommerce market.  Nevertheless, the platform lost its momentum and came close to shutting down at one point.  In 2017, Snapdeal considered the possibility of merging with Flipkart, but the deal did not come to fruition.  Its gradual shift to a value ecommerce proposition helped it get back on track.

Entrackr reported, citing sources, that AceVector’s public issue will mainly consist of a fresh share issue.  As per a source’s statement, “The planned issue will consist mainly of primary capital, with CLSA and IIFL expected to serve as the bankers for the proposed IPO.”

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Apart from Snapdeal, AceVector also serves as the parent company for the listed e-commerce enablement platform Unicommerce and the house of brands platform Stellaro Brands.  In 2022, the three entities were unified under one group brand.

The largest shareholders in the merged company are cofounders Kunal Bahl and Rohit Bansal, as well as SoftBank and Nexus Venture Partners.

Unicommerce is a business technology platform offering SaaS solutions for order and inventory management, among other areas.  In 2024, its public offering was oversubscribed by a factor of 168, and shares were listed on stock exchanges at an almost 118% premium.

Stellaro Brands, in the meantime, manages a house of brands.  It offers ethnic clothing under the Rangita label and Indo-Western garments under the Urban Mark brand.

This means that AceVector is the most recent new-age tech firm to hop onto the IPO bandwagon.  So far this year, Ather Energy and ArisInfra have made their stock exchange listings.  Smartworks, a leading player in the coworking sector, is anticipated to go public tomorrow.

In addition, 19 tech companies of the new age have submitted their DRHPs to SEBI for a listing, including Urban Company, Meesho, Groww, and others.  A number of them have been approved by the market regulator.

Yesterday, WeWork India, a major player in the coworking sector, received SEBI’s approval to initiate its IPO.  Smartworks recently wrapped up its public issue, which saw a 13.45X oversubscription as investors sought 13.9 Cr shares compared to the 1.04 Cr shares available.

Captain Fresh, a startup dealing in meat and seafood, became a public entity last week as it prepares for a public listing.