Indian eCommerce retailer Snapdeal has reportedly halted its planned initial public offering (IPO).
The firm filed papers for an IPO in December 2021 but changed its mind after seeing the drop in the valuations of technology companies in the stock market that has happened since then, Reuters reported Friday (Dec. 9).
“There is no appetite for tech stocks right now,” an unnamed source told Reuters.
The company said it might consider an IPO in the future, according to the report.
Snapdeal did not immediately reply to PYMNTS’ request for comment.
The company submitted its IPO filing with the Securities and Exchange Board of India (SEBI) on Dec. 21, 2021, saying it would issue new shares worth as much as $165 million.
As PYMNTS reported at the time, the company has been focusing on fashion and electronic accessories and said in the filing that it exists as India’s largest pure-play eCommerce platform, measured in revenue.
It added that the eCommerce market in India may grow from a value of about $7.4 billion at present to $39.4 billion by 2026 and that the online shopper base is projected to increase from about 150 million at present to as many as 350 million in fiscal year 2026.
In May, Indian hospitality startup Oyo delayed its plans for an IPO, citing in part the volatility in the markets.
“Price swings in a newly listed stock create concern among the public,” sources told the Economic Times at the time. “Amongst such sentiment, it will be best to be able to first show to the investors that the business revival is real, it is strong and is leading to much higher bookings.”
The most recent edition of PYMNTS’ CE 100 Index showed that connected economy names outpaced the broader markets, gaining 3.1% on the week.
The report attributed the gain to signs of resilient consumer spending.
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