Exclusive: India's Snapdeal to shelve $152 million IPO amid tech stocks rout

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SoftBank-backed Indian e-commerce firm Snapdeal has decided to pull the plug on its $152 million IPO, the company told Reuters, making it the latest casualty of a meltdown in tech stocks that has soured investor sentiment.

Flipkart in India's booming e-commerce space, filed a request this week with the country's market regulator SEBI to withdraw its IPO prospectus, said one source with direct knowledge of the matter.

In a statement to Reuters, Snapdeal said it has decided to withdraw the IPO prospectus "considering the prevailing market conditions", without elaborating. It adding that Snapdeal may reconsider an IPO in future depending on its need for capital and market conditions. Valued at $6.5 billion in 2016, Snapdeal has seen its popularity dwindle over the years as competition increased. It has recorded losses in the last three financial years between 2019 and 2021, and was hoping to raise new funds via IPO at a valuation of $1 billion.

In August, TPG and Prosus-funded Indian online pharmcy PharmEasy withdrew papers for its $760 million IPO, while Warburg Pincus-backed seller of wireless earphones, boAT Lifestyle, also withdrew its papers in October.

 

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Not the Tech crunch, Snapdeal has a serious legacy problem, which haunts the from the beginning. Message sent to CEO never got the response. This issue could be settled,but. . .

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