Unicommerce eSolutions – India’s preeminent Software-as-a-Service (SaaS) platform – facilitating e-commerce enablement within the transaction processing stratum, has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI. The company is seeking SEBI approval to launch its maiden public offer.
Unicommerce eSolutions IPO Details
Unicommerce eSolutions IPO entails an Offer For Sale (OFS), aggregating up to 2,98,40,486 equity shares by the Selling Shareholders and no fresh shares are being sold by the company. This OFS offering encompasses up to 1,14,59,840 equity shares facilitated by AceVector Limited (formerly known as Snapdeal Limited) (Promoter Selling Shareholder), along with up to 22,10,406 equity shares from B2 Capital Partners and an additional up to 1,61,70,240 equity shares by SB Investment Holdings (UK) Limited (Investor Selling Shareholder).
As of the date of the filing of the DRHP, the three investors hold a combined shareholding of 77.36% in the company. Recent transactions witnessed a consortium of notable investors, including Anchorage Capital Fund, Madhuri Madhusudan Kela, Rizwan Koita & Jagdish Moorjani, Dilip Vellodi, and others, acquiring shares in anticipation of the Unicommerce eSolutions IPO.
Impressive Track Record
Unicommerce eSolutions IPO builds on the prestige created by the company which emerged as the sole profitable entity among the top five contenders in the Indian e-commerce landscape during Fiscal 2022, as outlined by the Redseer Report.
Since its inception in 2012, Unicommerce has maintained a positive Profit After Tax (PAT) trajectory since FY 2021. Delving into the DRHP reveals a consistent legacy of profitability and expansion, showcasing a robust revenue surge of 52.56% and 47.55% for the preceding fiscal years in FY 2023 and FY 2022, respectively. The narrative extends to September 2023, with Unicommerce attaining an impressive Annual Recurring Revenue (ARR) of INR 103.74 crores.
Key Clients and Operating Stats
Unicommerce’s suite of SaaS solutions facilitates end-to-end e-commerce operations management for a diverse clientele, spanning brands, retailers, marketplaces, and logistics service providers.
Positioned as a stalwart in India, Unicommerce caters to a burgeoning clientele roster, boasting names like Lenskart, Fabindia, Zivame, TCNS, Mamaearth, Emami, Sugar, BoAt, Portronics, Pharmeasy, GNC, Cello, Urban Company, Mensa, G.O.A.T, Shiprocket, Xpressbees, and others.
The quarter concluding on 30 September 2023, witnessed Unicommerce processing an annual run-rate of 763.82 million order items, servicing 743 enterprise clients and 2,830 SMB clients. The company played a pivotal role, accounting for approximately 20-25% of India’s e-commerce dropship volume in Fiscal 2022, as per the insights from the Redseer Report.
Not Limited to India
Beyond its stronghold in India, where the majority of its clientele resides, Unicommerce extends its reach to six additional countries, primarily in South East Asia and the Middle East.
The anticipated Total Addressable Market (TAM) for players in the eCommerce enablement SaaS sector, specifically within the transaction processing layer, is projected to soar to approximately USD 4.1 billion by 2027. This surge is underpinned by the rapid growth of India’s e-commerce market, anticipated to burgeon at a CAGR of 25%, reaching an estimated USD 170 billion by 2027. Contributing factors include escalating shipment volumes, the ascendancy of Direct-to-Consumer (D2C) brands, the metamorphosis of traditional brands towards omnichannel strategies, and the burgeoning warehousing industry in India.
Steering the helm of Unicommerce eSolutions IPO is its Managing Director and Chief Executive Officer, Kapil Makhija. The recent expansion of Unicommerce’s Board of Directors introduces luminaries such as Manoj Kohli, Ullas Kamath, and Sairee Chahal as independent directors, while Kunal Bahl & Rohit Bansal join as non-executive directors.
Leading the charge as Book Running Lead Managers to the Unicommerce eSolutions IPO are IIFL Securities Limited and CLSA India Private Limited. With its strong credentials, Unicommerce eSolutions IPO appears to be well-placed to benefit from India’s red-hot primary market which saw 60 mainboard listings in 2023, with 52 of them delivering positive returns to IPO investors.
