Unicommerce Submits DRHP for IPO Focusing on Equity Share Offer
Three points you will get to know in this article:
- Unicommerce, part of AceVector Group, files DRHP for IPO, emphasizing equity share sale.
- FY23 shows robust revenue growth, SoftBank support, and global presence.
- Among SoftBank-backed startups, Unicommerce’s profitability sets it apart in current IPO landscape.
Unicommerce, a part of the AceVector Group alongside Snapdeal and Stellaro Brands, has recently submitted its draft red herring prospectus (DRHP) to the Securities Exchange Board of India (SEBI) for their upcoming initial public offering (IPO).
In this exciting move, the company aims to secure funds through an offer for sale (OFS) involving up to 2,98,40,486 equity shares.
Equity Share Details and Stakeholding
It’s important to highlight that Unicommerce’s DRHP exclusively focuses on the offer for sale, omitting any fresh issues. The proceeds from the offer will go directly to the selling shareholders. This signifies a unique aspect of Unicommerce’s IPO strategy.
AceVector Limited, formerly recognized as Snapdeal Limited, is currently offering a substantial 1,14,59,840 equity shares for sale. Simultaneously, B2 Capital Partners and SB Investment Holdings (SoftBank) are divesting 2,210,406 and 16,170,240 equity shares, respectively.
Steering the proceedings are IIFL Securities Limited and CLSA India Private Limited, entrusted with the pivotal role of book-running lead managers for this noteworthy issue.
Book-Running Lead Managers and Noteworthy Investors
As outlined in the Draft Red Herring Prospectus (DRHP), several noteworthy investors have shown confidence in AceVector Limited pre-IPO. Among them are Madhuri Kela, the esteemed spouse of veteran investor Madhusudan Kela, along with key contributors such as Anchorage Capital, CitiusTech co-founders Rizwan Koita and Jagdish Moorjani, and Dilip Vellodi, the founder of Sutherland Global Services.
Financial Performance and Revenue Breakdown
As per the DRHP filing, AceVector Limited presently commands a robust 38.18% stake. Following closely are SoftBank and B2 Capital Partners, holding 29.23% and 9.95% shares, respectively. Notable stakeholders include Madhuri Madhusudan Kela (1.66%), Dilip Vellodi (3.45%), and Anchorage Capital (7.77%), all contributing significantly to the company’s diverse ownership landscape.
Unicommerce presents comprehensive e-commerce empowerment SaaS solutions that seamlessly encompass order and inventory management, return processes, and omnichannel coordination.
In the first half of the financial year 2024, this venture, backed by SoftBank, achieved a noteworthy revenue of Rs 51 crore from its operational activities, coupled with a commendable profit of Rs 6.3 crore during the same duration. The fiscal year 2023 witnessed an impressive surge of 52.54% in its scale, soaring from Rs 59 crore in FY22 to a substantial Rs 90 crore. Furthermore, the company experienced a 7.8% growth in profits, reaching Rs 6.47 crore during FY23.
International Operations and Clientele
In addition to its presence in India, Unicommerce successfully operates in vibrant international markets such as Indonesia, Philippines, Singapore, Malaysia, UAE, and Saudi Arabia. It proudly serves esteemed clients like Edamama, RedTag, RSA Global, and more. In the financial year 2023, a significant chunk of Unicommerce’s revenue, precisely 97.3% (amounting to Rs 87.6 crore), was generated from its operations in India, while the remaining 2.7% (equivalent to Rs 2.4 crore) hailed from its thriving overseas ventures.
Interestingly, Unicommerce marks the third SoftBank-backed enterprise to file its Draft Red Herring Prospectus (DRHP) within the past fortnight. Joining the IPO bandwagon in the final week of December were Ola Electric and FirstCry, who also presented their initial public offering documents. It’s worth noting that a total of five promising startups, including MobiKwik and Awfis, have kickstarted their IPO processes in this dynamic period. Notably, among them, only Unicommerce and MobiKwik have managed to achieve profitability, showcasing their resilience and success story until the first half of the financial year 2024.
Unicommerce, a part of AceVector Group, has submitted its draft red herring prospectus for an upcoming IPO, focusing solely on an offer for sale (OFS) of up to 2,98,40,486 equity shares. Notable shareholders include SoftBank and B2 Capital Partners. Backed by SoftBank, Unicommerce experienced significant revenue growth in FY23, reaching Rs 90 crore. Operating in diverse international markets, it generated 97.3% of its revenue from India. This IPO filing follows the trend of SoftBank-backed enterprises, with Unicommerce and MobiKwik showing profitability amidst the surge of startups entering the IPO phase.
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