Prasannata Patwa ( )
Snapdeal, a digital marketplace backed by SoftBank, has shelved its $152 million public listing plans.
“Considering the prevailing market conditions, the company has decided to withdraw the DRHP (Draft Red Herring Prospectus). The company may reconsider an IPO (initial public offering) in the future depending on its need for growth capital and market conditions,” a Snapdeal spokesman said in an email response to YourStory.
Reuters was the first to report the development.
Started in 2010 by Wharton alumnus Kunal Bahl and IIT graduate Rohit Bansal, Snapdeal filed its IPO documents, in December 2021, for regulatory approvals. The year had seen the blockbuster listing of restaurant aggregator Zomato, in July 2021, followed by Falguni Nayar-led Nykaa in November 2021.
The year also saw a bull run in private and public markets. But entering 2022, investor sentiments soured due to tech stocks performing poorly.
In India, Snapdeal currently competes with Amazon and Flipkart. Currently, the ecommerce player operates in the value segment, where it retails “value-for-money” products under Rs 1,000.
(The copy was updated to fix a style error)