Unicommerce files DRHP with SEBI to sell 28.9 million shares

Software as a Service (SaaS) company Unicommerce, which is backed by ecommerce platform Snapdeal, has filed draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) to sell over 28.9 million shares through initial public offering (IPO). The offer comprises an offer for sale aggregating up to 2,98,40,486 equity shares by the selling shareholder with a face value of 1.

The offer for sale comprises of up to 1,14,59,840 equity shares by AceVector Limited (formerly known as Snapdeal Limited) (“Promoter Selling Shareholder"); up to 22,10,406 equity shares by B2 Capital Partners and up to 1,61,70,240 equity shares by SB Investment Holdings (UK) Limited (“Investor Selling Shareholder").

Also read: The public issue will not comprise any fresh issue of equity shares. A clutch of investors, including Anchorage Capital Fund, Madhuri Madhusudan Kela, Rizwan Koita & Jagdish Moorjani, Dilip Vellodi and others recently acquired shares in the company. Limited and CLSA India Private Limited are the Book Running Lead Managers to the Issue.

Unicommerce is the latest company to file IPO papers in the last fifteen days, after Ola Electric, FirstCry parent company Brainbees and Mobikwik. Also read: Unicommerce witnessed a robust 53 percent growth in revenue, reaching 90 crore in FY23, accompanied by an 8 percent increase in profits, totaling 6 crore.

Sources closely associated with the company's IPO preparations indicate that Unicommerce is poised to achieve a revenue milestone ranging from 120 to 150 crore in the ongoing fiscal year. The company experienced a noteworthy 86 percent surge in free cash flows (FCF) compared to the preceding fiscal year, escalating from 7.82 crore in FY22 to 14.57 crore in FY23.

This strengthened Unicommerce's ability to absorb heightened operating costs, which rose from 54.4 crore in FY22 to 84.1 crore in FY23. The increase was primarily attributed to rising expenses related to employee benefits, server costs, and other office related expenditures. Also read: Unicommerce claims to serve clients including Lenskart, Fabindia, Zivame, TCNS, Mamaearth, , Sugar, BoAt, Portronics, Pharmeasy, GNC, Cello, Urban Company, Mensa, G.O.A.T, Shiprocket, Xpressbees and others.

For the quarter ended September 30, 2023, the company had an annual run rate of processing 763.82 million order items for 743 enterprise clients and 2,830 SMB clients. The company processed approximately 20 25% of India’s e commerce dropship volume during Fiscal 2022 as per the Redseer Report. Livemint tops charts as the fastest growing news website in the world to know more.

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