Snapdeal cancels IPO
Snapdeal, an Indian online marketplace cancels $152 million IPO plan. The company told Reuters that the tech stock market is currently in a slump. And because of that, investors’ sentiment has been affected. That's why this decision has been taken for now.
Snapdeal filed its IPO papers in December 2021. In the same year, several Indian start-up companies entered the stock market. While many companies have completed their IPOs with flying colors, many have seen their shares plummet. In such a situation, several new companies are delaying their plans to enter the stock market.
Snapdeal filed an application to withdraw the IPO prospectus with SEBI this week. In a statement to Reuters, Snapdeal confirmed this. The decision was taken 'considering the current market conditions', the company said. Added to this, of course, is that Snapdeal may reconsider its IPO in the future. It all depends on the company's capital and market conditions.
It may be noted that Snapdeal started its journey in 2010 during the e-commerce boom. The company was founded by Kunal Bahl and IIT graduate Rohit Bansal. Snapdeal attracted a large number of customers in the initial few years mainly through huge discounts on electronic products. However, the company is currently lagging behind giants like Flipkart and Amazon.
