DRHP Link: https://www.india.clsa.com/
Unicommerce eSolutions Limited (“The Company”), which is India’s largest e-commerce enablement Software-as-a-Service (“SaaS”) platform in the transaction processing layer, in terms of revenue for the financial year ended March 31, 2022 (Source: Redseer Report), has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”) for IPO.
Unicommerce is the only profitable company among the top five players in this segment in India during Fiscal 2022 (Source: Redseer Report). Established in 2012, Unicommerce has been PAT-positive since FY 21. As per the DRHP the company has aconsistent track record of profitability and growth, with revenue growth of 52.56% and 47.55% over the previous fiscal years in FY 23 & FY 22, respectively. For the period ended September 2023, Unicommerce achieved an Annual Recurring Revenue (ARR) of INR 103.74 Crores.
The offer comprises of an offer for sale aggregating up to 2,98,40,486 equity shares bythe “Selling Shareholder” (The “Offer for Sale”) with face value of Rs. 1 each equity share. The offer for sale comprises of up to 1,14,59,840 equity shares by AceVector Limited (formerly known as Snapdeal Limited) (“Promoter Selling Shareholder”); up to 22,10,406 equity shares by B2 Capital Partners and up to 1,61,70,240 equity shares by SB Investment Holdings (UK) Limited (“Investor Selling Shareholder”)
A clutch of renowned investors, including Anchorage Capital Fund, Madhuri Madhusudan Kela, Rizwan Koita & JagdishMoorjani, Dilip Vellodi and others recently acquired shares in the company.
IIFL Securities Limited and CLSA India Private Limited are the Book Running Lead Managers to the Issue.
The company’s suite of SaaS solutions enables end-to-end management of e-commerce operations for brands, retailers, marketplaces and logistics service providers.
Unicommerce serves a large and growing base of marquee clients in India. These include, among others, Lenskart, Fabindia, Zivame, TCNS, Mamaearth, Emami, Sugar, BoAt, Portronics, Pharmeasy, GNC, Cello, Urban Company, Mensa, G.O.A.T, Shiprocket, Xpressbees and others.
For the quarter ended September 30, 2023, the company had an annual run-rate of processing 763.82 million order items for 743 enterprise clients and 2,830 SMB clients. The company processed approximately 20-25% of India’s e-commerce dropship volume during Fiscal 2022 as per the Redseer Report.
Besides India, where Unicommerce has a majority of its clients, the company also has clients in six other countries, primarily in South East Asia and the Middle East.
The total addressable market (“TAM”) for players in the eCommerce enablement SaaS in the transaction processing layer is expected to be worth approximately US$ 4.1 billion in 2027. The growth is fueled by India’s fast-growing e-commerce market (estimated to grow at a CAGR of 25% to reach approxUS$ 170 Bn by 2027), rising shipment volumes, the emergence of D2C brands, the transition of traditional brands to omnichannel, and the expansion of the warehousing industry in India.
Unicommerce is led by its Managing Director and Chief Executive Officer, Kapil Makhija. Unicommerce recentlyexpanded its Board of Directors by inducting Manoj Kohli, Ullas Kamath, and Sairee Chahal as independent directors and Kunal Bahl & Rohit Bansal as non-executive directors.
