Snapdeal to be listed on US bourses by 2016-17

While Alibaba’s fund deal may have fallen apart, ecommerce marketplace Snapdeal is set to announce an initial public offering (IPO) in the US at a valuation of 5-6 billion dollars (over Rs 31,000 to Rs 37,000 crores). Sources claim that the company has appointed merchant bankers for the probable listing on the American stock exchange. The IPO is expected to roll out in 2016-17, and will let Snapdeal raise capital, allowing some of its investors to exit.

Funding talks between leading marketplace Snapdeal and Chinese giant Alibaba could not reach a logical conclusion over high valuation sought by Snapdeal. Amid stiff competition and also under pressure to turn profitable, Snapdeal was eyeing a record funding boost of Rs 6,200 crores from Alibaba. Even earlier, both had held talks but the deal could not be finalised over the same issue.

The company is looking at focusing on high margin fashion business by tripling clothing sales on its platform, over the next 12 months, against value of garments sold in the previous year driven by heavy discounts, rise in m-commerce and rising number of customers shopping online. The company managed to sell fashion products including clothes, footwear and accessories—worth about 700 million dollars (over Rs 4,300 crores) in the year ended March 31, 2015. The plan is to expand its product basket by adding more brands, options, while reaching out to more number of cities and increasing vendors over the next 18 months.