To mark a big step, the leading e-commerce marketplace, Snapdeal has joined the IPO boom of India. The company has made its move into investing in a portfolio of power brands. Not only that, according to the documents Snapdeal used to file in Securities and Exchange Board of India, it seems to be in a great position to venture into this area. It is considered to be a well-planned move by Snapdeal to accelerate its growth in various sectors of the retail market. As per its plans to expand its branches, Snapdeal plans to create a robust connectivity channel with various offline stores to increase its capacity to offer services to its customers. It has planned to raise $165 million through sales of its shares. It is coming with an offer for sale of 3.07 crore shares that are worth a whopping Rs 1250 crores. As per the experts, this move can potentially make Snapdeal worth $1.5-1.7 billion in the market. Snapdeal’s Unicommerce also helped it generate huge profits in the financial years 2019 and 2021 and the six months until 30th September 2021.
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However, with Unicommerce, Snapdeal is planning to expand its business to various other geographical locations like North America, Europe, the Middle East, and Southeast Asia. Besides these, it has also announced that its portfolio of 13 power brands is worth 5.6 percent of the company’s value. To those who don’t know, Power Brands are those brands that Snapdeal licenses to its sellers. According to it, the products under the power brands’ name are manufactured solely by the sellers. Snapdeal doesn’t own its inventories. The company is also planning to increase the share of the power brands in its value.
