AceVector files RHP for Rs 287 Cr 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 (RHP) with SEBI for an IPO comprising a Rs 287 crore fresh issue, along with an offer for sale (OFS) by existing shareholders. Under the IPO, AceVector will raise Rs 287 crore through a fresh issue, while existing shareholders will sell up to 4.12 crore shares through an offer for sale (OFS). Starfish I Pte. Ltd., the promoter selling shareholder, will account for the largest portion of the OFS, offering up to 2.76 crore shares, or 66.9% of the total shares on offer. Meanwhile, three Nexus entities — Nexus India Direct Investments II, Nexus Opportunity Fund and Nexus Ventures III  will collectively offer 86.96 lakh shares, accounting for around 21% of the OFS. Its co-founders Kunal Bahl and Rohit Bansal, who together hold a 33.99% stake directly and through related entities, will not participate in the OFS. Existing investors, including SoftBank and Foxconn, will also sell a small portion of their holdings. The IPO comes as AceVector has made progress on its financial performance and turned free cash flow positive in FY26. The company generated adjusted free cash flow from operations of Rs 10.82 crore in FY26, compared with a negative position in the previous year. Its operating revenue also grew 29% to Rs 510.38 crore in FY26 from Rs 395.02 crore in FY25. AceVector also significantly reduced its operating losses during the year. Its adjusted EBITDA loss narrowed 59% to Rs 15.94 crore in FY26 from Rs 39.16 crore in FY25. The adjusted EBITDA margin consequently improved to -3.12% from -9.91% during the same period. AceVector operates two key businesses, Snapdeal, its value-focused ecommerce marketplace, and Unicommerce, an ecommerce enablement SaaS platform. Snapdeal derives more than 62% of its business from fashion, with most products priced below Rs 599. Nearly 82% of its orders come from non-metro cities. Meanwhile, Unicommerce serves more than 8,100 clients across India, Southeast Asia and the Middle East through its ecommerce technology platforms. AceVector plans to use the fresh issue proceeds to strengthen Snapdeal’s technology infrastructure, invest in marketing and business development, pursue inorganic growth opportunities and meet general corporate requirements. The IPO will open for subscription on September 25 and close on September 29, with the anchor book opening on September 24. IIFL, CLSA and Systematix Group are the book-running lead managers. Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investorshere.

Original source: Entrackr