Snapdeal defers $152 mn IPO indefinitely citing poor market conditions

Development follows shelving of IPO plans by several notable firms such as Image Marketing (owner of wearable brand Boat), Droom Technology and PharmEasy

SoftBank-backed e-commerce company Snapdeal has deferred its IPO plans through which it was aiming to issue equity shares worth $152 million, becoming the most recent entrant in a long line of companies shelving their listing plans this year.

The firm, which cited poor market conditions as the reason for the deferral, is yet to decide on a new timeline for the IPO.

“Considering the prevailing market conditions, the company has decided to withdraw the DRHP (draft red herring prospectus). The company may reconsider an IPO in the future depending on its need for growth capital and market conditions," said a Snapdeal spokesperson.

The company filed a request for withdrawal of its IPO with the Securities and Exchange Board of India (Sebi) earlier this week.

The development comes at a time when many technology majors are shelving their plans for IPOs.

Earlier this year in October, Imagine Marketing – the company that owns wearable brand Boat – and online automobile marketplace Droom Technology had withdrawn their listing plans. A month before that, PharmEasy parent API Holdings withdrew its DRHP.

Hospitality major OYO, which had filed its draft papers with Sebi in October last year, is also yet to receive the Sebi nod to go public, joined by the likes of digital payments firm MobiKwik.

Snapdeal, which competes with other e-commerce giants like Amazon, Flipkart and Meesho, recently lost its coveted unicorn status after the company’s valuation dipped below $1 billion amid widespread valuation markdowns.

The e-commerce company had also signed an onboarding agreement with the government-backed Open Network for Digital Commerce (ONDC) in July 2022, making it the first e-commerce platform to debut on the ONDC platform.