Unicommerce operates under AceVector, the parent company overseeing Snapdeal and Stellaro, a portfolio of lifestyle brands. Acquired by Snapdeal in 2015, Unicommerce achieved profitability within a two-year timeframe.
Sharing some excerpts on why is it going public and an overview of the ecommerce industry in India.
So why not raise money from the private VCs?
Private markets are not what they were in 2020. For a company that’s profitable, growing every single year and nailing business fundamentals - unfavourable conditions in private market - that’s what we are in Q1 of 2024.
Why go public now?
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It is profitable. Unicommerce’s last reported revenue was ₹90 Cr (₹6 Cr profit). This public offering will go into what is called as “Micro-cap” companies list. Something that not a lot of startup founders want to go into as it restricts them from having a larger IPO and more lucrative institutional public investors.
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Strong retention. Its net revenue retention is 133% proving a solid product market fit even at a 750+ enterprise client scale.
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Ecommerce tailwind. China & USA have an ecom penetration of 31% and 15%. Even with Flip, Amazon & Meesho India only has about 6% penetration leaving plenty of possibilities. Plus, Unicommerce is category agnostic - take any ecom business and the problems at the nerve center are the same.
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India’s ecommerce has immense room to grow. If our per capita income grows as it is right now, we will have multiple layers of society buying online and this is at a 140 Cr people scale.
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The South East Asia & Middle east. Unicommerce’s 176 enterprise clients last year had a good share of 45 clients from these markets. DRHP points to how Unicommerce wants to penetrate even further into those markets.
Here is the complete newsletter - https://shorts.growthx.club/p/why-is-unicommerce-going-public