In a significant development for India's digital commerce sector, AceVector Ltd, the parent company of e-commerce marketplace Snapdeal, has taken a crucial step towards its much-anticipated initial public offering (IPO). The SoftBank-backed firm has submitted an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi), the market regulator.
IPO Structure: Fresh Capital and Shareholder Exit
The proposed public offering comprises two key components. The first is a fresh issue of equity shares worth Rs 300 crore, aimed at raising new capital for the company. The second is an offer for sale (OFS) where existing shareholders will offload up to 6.38 crore shares of the company.
Prominent investors and entities participating in the OFS include promoter entity Starfish I Pte Ltd, Nexus Ventures, Wonderful Star Pte. Ltd, and individuals like Kenneth Stuart Glass and Jason Ashok Kothari. Other sellers are Priyanka Shreevar Kheruka, Rupen Investment and Industries, and Centaurus Trading and Investments.
Promoters Hold Steady, Focus on Growth
Notably, the company's founders and promoters, Kunal Bahl and Rohit Bansal, will not sell any of their shares in this offer for sale. Together, they hold a significant 34.63 per cent stake in AceVector Ltd. This stake includes Bahl's individual holding of approximately 12.42%, Bansal's 11.14%, and an additional 11.07% held through their jointly owned entity, B2 Professional Services LLP.
Another major promoter, Starfish, which owns a 30.68% stake, will divest a part of its holding through the OFS. The decision by the founders to retain their shares signals strong confidence in the company's future growth trajectory post-listing.
Utilisation of Proceeds and Business Portfolio
According to the draft papers filed with Sebi, the net proceeds from the fresh issue will be strategically deployed. The company plans to strengthen its technology infrastructure and bolster marketing and business promotion efforts for its flagship platform, Snapdeal. A portion of the funds is also earmarked for pursuing inorganic growth through acquisitions and for general corporate purposes.
Headquartered in Gurugram, AceVector Ltd operates a diversified digital commerce ecosystem. Its main assets are Snapdeal, a value-focused lifestyle e-commerce marketplace; Unicommerce, a SaaS platform for e-commerce enablement; and Stellaro Brands, its omnichannel consumer brands business.
Financial Performance Shows Improvement
The company's financial health appears to be on an upward swing. For the first half of the fiscal year 2026 (H1 FY26), AceVector reported an operating revenue of Rs 244 crore. This marks a robust 34 per cent increase from the Rs 181 crore recorded in the same period of the previous fiscal year (H1 FY25).
More importantly, the company's path to profitability is becoming clearer. Its adjusted EBITDA loss narrowed substantially to Rs 9.2 crore in H1 FY26, a significant improvement from the Rs 28 crore loss reported a year earlier. This indicates better operational efficiency and cost management.
The IPO Journey So Far
AceVector initiated its IPO process earlier this year by opting for the confidential pre-filing route with Sebi in July. The regulator granted its approval for the draft papers in November. The confidential filing route allowed the company flexibility, enabling it to delay the public disclosure of detailed IPO plans until a more advanced stage in the process. The filing of this updated UDRHP is the latest step, bringing the company closer to its stock market debut.
This move by AceVector is being closely watched by market participants as a bellwether for the health of India's tech and e-commerce IPO landscape, especially for value-focused platforms.
