AceVector, the parent company of Indian ecommerce marketplace Snapdeal, is set to launch its initial public offering (IPO) on September 25 with a valuation of Rs 1,741 crore. The offering includes fresh capital raise and an offer-for-sale by existing investors such as SoftBank and Nexus Venture Partners.
- AceVector sets IPO price band at Rs 30-32 per share
- SoftBank to sell Rs 88 crore shares but retains majority stake
- Nearly half of proceeds aimed at Snapdeal marketing push
What happened
AceVector, the holding company for Snapdeal, will launch its IPO on September 25, targeting a valuation of Rs 1,741 crore at the top end of the price band of Rs 30-32 per share. The company plans to raise Rs 287 crore through fresh issuance and has an offer-for-sale component worth Rs 133 crore where early investors, including SoftBank, Nexus Venture Partners, and Foxconn, are selling shares.
SoftBank, which holds a 30.1% stake in AceVector, will sell shares worth Rs 88 crore but continue to hold shares with a valuation of Rs 362 crore. Founders Kunal Bahl and Rohit Bansal, who collectively control about 34% of AceVector, have decided not to sell any shares during the IPO.
Why it matters
This IPO represents a major reset in valuation for Snapdeal, which was once valued at $6.5 billion during its peak in 2016, a far cry from the Rs 1,741 crore (~$182 million) valuation AceVector is commanding now. SoftBank had invested around $1 billion into Snapdeal in earlier years but wrote off much of that investment after merger talks with Flipkart fell apart.
AceVector’s financials indicate a positive turnaround, with operating revenue increasing 30% to Rs 510 crore in fiscal year 2026 and the net loss narrowing significantly from Rs 126 crore to Rs 45 crore. The company’s strategy includes leveraging proceeds to boost Snapdeal through marketing and growth initiatives, aiming to regain ground in India’s cutthroat ecommerce sector.
What to watch next
Market reaction to AceVector’s IPO pricing and subscription will be key indicators of investor appetite for a revival story in Indian ecommerce dominated by giants like Flipkart and Amazon. Close attention will be on how effectively AceVector deploys the new capital to enhance Snapdeal’s competitiveness and expand its market share.
Further developments around value growth of AceVector’s subsidiaries, including ecommerce enablement platform Unicommerce and house-of-brands company Stellaro Brands, will also be significant to watch as these businesses contribute to the overall ecosystem. Investors will also track SoftBank’s stake retention strategy following the partial sell-down during the IPO.