Snapdeal Parent AceVector Files RHP for Rs 287 Crore Fresh Issue, Turns Free Cash Flow Positive in FY26
SoftBank-backed AceVector, the parent company of Snapdeal and Unicommerce, has filed its Red Herring Prospectus with SEBI for an IPO comprising a Rs 287 crore fresh issue alongside an offer for sale of up to 4.12 crore shares, with the issue expected to open on September 25, 2026.
Here's how the OFS breaks down. Starfish I Pte Ltd, the promoter selling shareholder, will account for the largest chunk, offering up to 2.76 crore shares, nearly 67% of the total shares on offer. Three Nexus entities, Nexus India Direct Investments II, Nexus Opportunity Fund and Nexus Ventures III, will collectively offer another 21%, while Foxconn-backed FIH Business Global will also sell a portion. Notably, co-founders Kunal Bahl and Rohit Bansal, who together hold nearly 34% of the company directly and through related entities, will not sell any shares in the IPO.
The financial turnaround is really the headline here. AceVector generated an adjusted free cash flow from operations of Rs 10.82 crore in FY26, a sharp reversal from a negative position the year before. Operating revenue grew 29% to Rs 510.38 crore in FY26 from Rs 395.02 crore in FY25, while adjusted EBITDA loss narrowed 59% to Rs 15.94 crore from Rs 39.16 crore, improving the adjusted EBITDA margin to -3.12% from -9.91%. Net loss narrowed even more sharply, down 64% to Rs 45.5 crore from Rs 126.3 crore, though FY25's number was inflated by one-time exceptional expenses tied to a security deposit write-off, none of which recurred in FY26.
Here's what makes up the business. Snapdeal, the value-focused e-commerce marketplace, draws more than 62% of its business from fashion, with most products priced under Rs 599, and nearly 82% of its orders coming from non-metro cities, recording Rs 1,093.1 crore in marketplace NMV with 1.2 crore annual transacting users. Unicommerce, the e-commerce enablement SaaS arm, serves more than 8,100 clients across India, Southeast Asia and the Middle East.
The IPO proceeds have a clear purpose. Over Rs 100 crore is earmarked for potential acquisitions, though no specific targets have been identified yet, with the rest going toward strengthening Snapdeal's technology stack, including AI-driven personalisation, customer engagement and retention, plus marketing and general corporate needs. IIFL, CLSA and Systematix Group are the book-running lead managers for the issue.
From a bruising few years to a free-cash-flow-positive IPO filing, AceVector's Snapdeal story is proof that India's value e-commerce space still has real staying power.
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— Sandeep Raiza