CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Online marketplace Snapdeal files for $165m Mumbai IPO

By Munikoti Rochan

10:08, 21 December 2021

Shopping cart in front of Snapdeal logo
Softbank-backed Snapdeal files for an IPO in Mumbai – Photo: Snapdeal

E-commerce platform Snapdeal filed draft papers for an initial public offering (IPO) of its shares with India’s markets regulator on Tuesday.

The Softbank Group-backed online marketplace is looking to raise INR 12.5bn ($165.4m) from the proposed initial share sale.

Of the existing 71 stakeholders, Softbank Group, private equity major Sequoia Capital, Canadian fund Ontario Teacher’s Pension Plan Board and five other shareholders will dilute their stake through the public offering.

Softbank owns 35.41% of Snapdeal. Founders Kunal Bahl and Rohit Kumar Bansal together own 20.28% but are not selling any of their stake, per the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI).

The bulk of the funds raised will be utilised for “organic growth initiatives”. Axis Capital, BofA Securities India, CLSA India and JM Financial are the book-running lead managers (BRLMs) to the issue.

Evolution and current reach

Snapdeal, founded in 2007, started off as a coupon booklet business, which was transformed into an online deals platform in 2010 and a digital e-commerce marketplace in 2012.


15,925.90 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

Oil - Crude

75.68 Price
-2.690% 1D Chg, %
Long position overnight fee -0.0165%
Short position overnight fee -0.0054%
Overnight fee time 22:00 (UTC)
Spread 0.030


37,805.25 Price
+0.060% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


2,036.34 Price
-0.400% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 22:00 (UTC)
Spread 0.30

Snapdeal boasts of more than 550 million monthly page views, over 200 million app installations and some 40.15 million monthly active users. Repeat customers drive 77% of its business, according to the DRHP.

Who buys from Snapdeal?

The shopping site hosts merchandise across several categories, including fashion, home &  general merchandise and beauty & personal care, among others. Though it serves users across the sub-continent, its aim is “to attract value buyers who belong to the mid-income segment and are predominantly located in (the smaller) cities of India which, according to [management consultancy] RedSeer form the majority of the untapped value e-commerce buyers”.

In a recent blog post, Snapdeal chief executive Bahl said that “some of the top towns and cities where (the firm’s) customers live are Malapuram, Cuddapah, Salem, Kalyan, Silchar, Nagaon (and) Sangli, among others.”

“The fact that 50% of Indian households fall in the approx (INR 200,000-500,000) per annum income segment is what makes the value lifestyle retail market in [the country], at $88bn, a massive opportunity,” he added.

Read more: India’s Syrma SGS Technology to raise 7m through IPO


Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading