Unicommerce, backed by Snapdeal, submits DRHP; Existing Investors to Offload Up to 2.98 Crore Shares

Unicommerce, a SaaS startup backed by Snapdeal, has taken a significant step toward its initial public offering (IPO) by submitting the draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This move makes Unicommerce the fifth Indian startup to file for an IPO recently.

Unlike traditional IPOs involving the issuance of new shares, Unicommerce’s IPO will solely consist of an offer for sale (OFS). The DRHP outlines that the startup’s existing investors plan to sell up to 2.98 crore shares during the IPO. SB Investment Holdings (UK) Limited, a SoftBank affiliate with a 29.23% stake in Unicommerce, is set to sell the highest shares at 1.6 crore.

AceVector Limited, the promoter and parent entity of Snapdeal, holds a 38.18% stake in Unicommerce and plans to sell shares worth up to 1.14 crore. B2 Partners, owning 9.95% of the startup, will sell up to 22 lakh shares in the IPO. Notably, there will be no pre-IPO placement for Unicommerce.

The IPO’s proceeds will directly benefit the existing shareholders selling their stakes. Unicommerce reported a profit of INR 6.3 crore in the first half of FY24, with an operating revenue of INR 51 crore. In H1 FY24, total expenses amounted to INR 45.5 crore, with employee benefit expenses being the most significant contributor at INR 34.5 crore.

Founded by Ankit Pruthi, Karun Singla, and Vibhu Garg at IIT Delhi, Unicommerce was acquired by Snapdeal in 2015. The startup offers a suite of SaaS products facilitating the efficient management of post-purchase e-commerce operations for enterprises and small and medium businesses (SMBs).

This suite includes a Warehouse and Inventory Management System (WMS), a Multi-Channel Order Management System (OMS), an Omni-Channel Retail Management System (Omni-RMS), a Seller Management Panel for marketplaces (Uniware), Logistics Tracking and Courier Allocation (UniShip), and Payment Reconciliation (UniReco).

Unicommerce’s decision to go public aligns with the trend of Indian startups, including Ola Electric, Awfis, FirstCry, and MobiKwik, capitalizing on the favourable conditions in the Indian equities market.