Snapdeal prepares for an IPO in 2019; appoints top investment banks for stake sale

Snapdeal, the Softbank backed e-commerce player which is currently grappling with major financial concerns, is planning to list itself on the bourses during the second half of 2019. The company has finalized 5 i-banks including SBI Caps and Kotak Mahindra Capital, Credit Suisse as a special advisor for stake sale, and top law firms such as Amarchand Mangaldas, AZB & Partners and Khaitan & Co.

The company spokesman said that “The IPO process is on with in earnest and may open in the second half of calendar 2019, depending on the market sentiment. The management has zeroed in on five i-bankers including SBI Caps and Kotak Mahindra”. The development is in contract with the current market position of the startup. Snapdeal has slashed its workforce from 7,000 a year ago to 3,000 right now because of severe cash crunch and massive valuation write-down.

The Gurgaon-based startup which has been burning money to compete with its larger rivals Flipkart and the American giant Amazon, is reported to have only cash left for a year at best, and is desperate to raise funds amidst reports that existing investors led by Softbank. which own 33%, and Kalari Capital want it to be merged with Flipkart or Paytm.