Snapdeal parent AceVector files updated IPO papers:Plans to raise ₹300 crore, SoftBank and other investors to sell some 6.3 crore shares in OFS

Snapdeal’s parent company, AceVector Limited, has taken a major step toward going public. The e-commerce firm has filed an updated Draft Red Herring Prospectus (DRHP) with market regulator SEBI, signaling fresh momentum in its long-awaited IPO plans. How Much Will the IPO Raise? AceVector aims to raise ₹300 crore through a fresh issue of shares. Alongside this, existing investors will participate in an Offer for Sale (OFS), where they plan to offload 6.3 crore equity shares. Major investors like SoftBank and Nexus Venture Partners are among those reducing their stake through the OFS. Where Will the Funds Be Used? The money raised from the fresh issue will be directed toward: These investments are aimed at positioning the company for growth as it prepares for life as a publicly listed entity. IPO Details Still in Progress Although AceVector has filed its updated papers, the final IPO size, dates, and price band will only be announced after SEBI grants approval. Market watchers believe this move could rekindle investor interest in India’s e-commerce sector. How Did Snapdeal Reach the IPO Stage? Snapdeal’s journey began in 2010, at a time when India’s e-commerce wave had just started rising. Founded by Kunal Bahl and Rohit Bansal, the company set itself apart early by focusing on local and value-driven brands. Snapdeal grew rapidly in its initial years, but the landscape shifted with the entry of giants like Amazon and Flipkart. The rising competition pushed Snapdeal into a tough spot. In 2017, the company sold a 20% stake to Flipkart, eventually aligning itself with the ecosystem that later became JioMart. Today, under its parent company AceVector, Snapdeal once again operates independently. The brand has repositioned itself to serve India’s smaller cities, where demand for affordable, local products is booming. Despite intense valuation pressures in the broader e-commerce space, Snapdeal has transitioned to a more sustainable and profitable model. Why Is SoftBank Selling Its Stake? In the Offer for Sale (OFS), major backers like SoftBank and Nexus Venture Partners plan to reduce their holdings. SoftBank has been with Snapdeal since its early years but has recently reassessed several e-commerce bets globally. For these investors, the OFS provides much-needed liquidity, while the fresh issue portion of the IPO brings new capital into the company. Market analysts say this move could help Snapdeal ease its funding challenges at a time when the Indian e-commerce market is expected to reach $200 billion by 2025, creating room for players targeting niche and value-conscious segments. What Does Snapdeal Expect From the IPO? Snapdeal’s IPO aims to push the company into its next phase of growth. The raised funds will go toward: With India’s e-commerce boom continuing, Snapdeal is betting big on markets where online shopping is still growing fast. If everything goes smoothly, the stock could receive a positive response upon listing. However, industry experts note that competition, regulatory dynamics, and margin pressures will remain ongoing challenges. Still, Snapdeal says the IPO will help create value for its stakeholders and accelerate its long-term expansion plans.