Snapdeal Shifts Focus To Value Fashion Ahead Of IPO

Snapdeal, which was once among India’s leading horizontal e-commerce platforms, is approaching its IPO with a transformed business strategy. The company is now positioning itself as a focused value fashion and lifestyle marketplace rather than a platform offering products across multiple categories, as per a report by Moneycontrol.

AceVector, Snapdeal’s parent company, announced an IPO price band of ₹30-32 per share on September 22. The issue includes a fresh share sale of ₹287 crore and an offer for sale of up to 4.16 crore shares valued at around ₹133 crore.

At the upper price band, the company’s post-issue valuation is expected to be about ₹1,741 crore. The IPO will open on September 25 and close on September 29.

Snapdeal CEO Achint Setia said the company aims to create a specialised fashion shopping experience driven by curation and technology.

"Customers looking to buy fashion want a curated experience. They don't want fashion to be mixed with general merchandise, grocery, tools and other categories. That is a key point of differentiation for Snapdeal. Rather than being an all-in-one marketplace, we are building a focused fashion marketplace with technology-led curation and discovery," Setia said.

The company believes India’s e-commerce market can support multiple business models, including premium, urban lifestyle and value-focused platforms.

Company targets value-conscious shoppers

Snapdeal co-founder Rohit Bansal said the platform is targeting consumers in the value lifestyle segment, with products generally priced between ₹300 and ₹800. He added that over two-thirds of new customers joining the platform are from Gen Z.

"The interesting part about the Indian market is that multiple segments coexist and can scale simultaneously. If I just talk about the value lifestyle market, there's an urban lifestyle shopping market, there's a value lifestyle shopping market, or there's a premium branded market and a value market," Bansal said.

The company’s current IPO plans are smaller than its earlier proposal in 2021, when it intended to raise around ₹1,250 crore. Snapdeal said improved capital efficiency has reduced funding requirements, with revenue rising 20% last year and the business turning adjusted free-cash-flow positive.