Snapdeal pivots to value fashion as ₹420cr IPO approaches
What's the story
Snapdeal, once a leading horizontal e-commerce marketplace in India, is gearing up for its public debut with a new strategy. The company has announced a price band of ₹30-32 per share for its issue. The IPO consists of a fresh issue worth ₹287 crore and an offer for sale of up to 4.16 crore shares, valued at around ₹133 crore. At the upper end of the price band, AceVector, Snapdeal's parent company, will be valued at some ₹1,741 crore post-issue.
Strategic shift
Snapdeal's new strategy focuses on fashion
Achint Setia, CEO of Snapdeal, has revealed the company's new strategy. He said they want to provide a more curated fashion experience instead of being a general marketplace with multiple categories.
"Customers looking to buy fashion want a curated experience," Setia said, adding that this is "a key point of differentiation for Snapdeal."
Market adaptation
The competition in the e-commerce landscape
As online shopping becomes more fragmented, with quick commerce moving into discretionary categories and established e-commerce players competing for price-conscious consumers, Snapdeal is doubling down on fashion and lifestyle.
The company thinks discovery, assortment, and value matter as much as speed in these sectors.
Rohit Bansal, co-founder of AceVector and Snapdeal, said multiple segments can coexist and scale simultaneously in the Indian market.
Customer focus
Identifying core customer and shift in customer base
Snapdeal has identified its core customer as one who shops in the ₹300-800 price range, between deep-value offerings at ₹100-300 and branded fashion typically priced above ₹800.
The company has also seen a shift in its customer base, with over two-thirds of new customers now being Gen Z.
This repositioning has also affected Snapdeal's capital needs for the IPO it first explored in 2021.
Business efficiency
Financial metrics of Snapdeal
Bansal said the business has become more capital efficient, with consolidated revenue growing 20% last year and the company turning adjusted free-cash-flow positive.
The company had 1.22 crore unique transacting customers in FY26, with its customer base growing by 55% over two years.
Purchase frequency among existing customers increased by 19% last year, while the top 10% of customers buy an average of 18 times a year.