Snapdeal parent AceVector files confidential draft IPO papers with SEBI

New Delhi | July 19, 2025 —
AceVector Ltd, the parent company of e-commerce platform Snapdeal, has filed confidential draft papers with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO), according to sources familiar with the development. The move marks a renewed ambition to list publicly after its previously scrapped IPO plans in 2022.

While the company has opted for a confidential filing, permitted under SEBI's Innovators Growth Platform (IGP) and regulatory provisions introduced in March 2024, the IPO is expected to include both fresh issue of shares and an offer for sale (OFS) by existing investors.

A Second Shot at Public Markets

AceVector’s decision to file draft papers comes nearly three years after its initial IPO plan was withdrawn due to volatile market conditions. Snapdeal, once touted as a serious contender to Flipkart and Amazon in India’s e-commerce race, had originally filed for an IPO worth ₹1,250 crore in late 2021. However, market headwinds and dampened tech investor sentiment in early 2022 led to a rethink.

In its latest attempt, AceVector appears to be banking on improved business fundamentals and a more receptive market for digital-first, mid-market e-commerce players.

Business Evolution and Strategic Focus

Over the past two years, AceVector has undergone strategic restructuring. The firm pivoted away from high-burn customer acquisition models and focused instead on value e-commerce catering to price-conscious customers from Tier-II and Tier-III cities. This repositioning, coupled with a tighter cost structure, reportedly helped the company reduce operating losses.

A person aware of the matter said, “Snapdeal has recalibrated its business to suit India’s Bharat economy. AceVector’s pitch to investors will likely highlight its asset-light operations, logistics partnerships, and demand from underpenetrated consumer segments.”

Snapdeal has also exited non-core verticals such as payments (FreeCharge) and logistics (Vulcan Express) in the run-up to the IPO, aligning with its intent to sharpen focus on core e-commerce.

Market Context and Investor Sentiment

The Indian IPO market has seen a resurgence in 2025, with successful listings from consumer tech firms like Zepto, ixigo, and Ola Electric boosting sentiment. According to Prime Database, over ₹52,000 crore has been raised via IPOs in the first half of 2025, with strong retail and institutional participation.

“The environment for consumer-facing IPOs is significantly better now than it was two or three years ago,” said Abhimanyu Dutta, Head of Research at Ratha Capital. “Investors are looking for profitable growth stories or companies that are clearly on the path to break-even. If AceVector’s numbers support that narrative, the market will be receptive.”

However, experts caution that challenges remain. E-commerce remains a hyper-competitive sector, with wafer-thin margins and constant discount pressures. Moreover, unlike Flipkart and Amazon, Snapdeal has stayed out of the premium customer and urban markets.

Financials and Fund Utilization

While AceVector’s draft red herring prospectus (DRHP) is confidential, industry insiders suggest the IPO could raise between ₹1,000 and ₹1,200 crore. A portion of the proceeds is expected to be used for marketing, technology upgrades, customer acquisition, and working capital.

The firm is also expected to provide financial data for FY23 and FY24, including its improved EBITDA margin and reduced net cash burn.

AceVector is backed by marquee investors like SoftBank, Temasek, Foxconn, and Bessemer Venture Partners. Some of these investors may look to offload a part of their holdings in the OFS component.

Analyst Perspectives

Market analysts are divided on whether Snapdeal’s differentiated approach can win in a crowded e-commerce space.

“Simplicity and focus on a value-first strategy can work if executed well,” said Reena Thomas, Internet Sector Analyst at Axis Securities. “The company’s rural and small-town customer base is underpenetrated by larger players, but Snapdeal needs to maintain high service standards at low cost — a tricky balance.”

Others are more cautious. “Snapdeal is a known brand, but it’s no longer top-of-mind for many consumers,” said a Mumbai-based fund manager requesting anonymity. “Unless the company has fundamentally turned around, investors may remain skeptical.”

Investor Outlook: Risk and Reward

For investors, AceVector’s IPO represents both a contrarian opportunity and a test of confidence in value e-commerce in India. The company’s return to the public market will be closely watched as a barometer for the next wave of digital listings.

Key areas investors will scrutinize include:

• Revenue growth and margin trends

• User retention in Tier-II+ markets

• Competition from niche players like Meesho, DealShare, and Flipkart Shopsy

• Governance and capital efficiency

If AceVector can convincingly showcase a stable, asset-light, and profitable path forward, the IPO could attract long-term institutional investors keen on e-commerce exposure beyond the established giants.

AceVector’s confidential filing with SEBI reignites its long-standing ambition to tap public markets. Coming amid improved IPO market conditions and growing investor appetite for tech-backed consumption stories, this move sets the stage for a potentially pivotal listing. The road ahead depends heavily on how well AceVector can prove the sustainability of its revamped e-commerce model.