Unicommerce files for IPO

E-commerce enablement SaaS platform in the transaction processing layer, Unicommerce eSolutions 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. Established in 2012, Unicommerce has been PAT-positive since FY 21. As per the DRHP the company has a consistent track record of profitability and growth, with revenue growth of 52 percent and 47 percent over the previous fiscal years in FY23 & FY22, respectively,” reads the release.

For the period ended September 2023, Unicommerce achieved an Annual Recurring Revenue (ARR) of ₹103 crore and a 25 percent YoY revenue growth. 

The company also recorded 108 percent Net Revenue Retention for enterprise clients and gross margin of 78 percent as of September 2023. 

The offer comprises of an offer for sale aggregating up to 29.8 million equity shares by the selling shareholder with face value of ₹1 each equity share. The offer for sale comprises of up to 11.4 million equity shares by AceVector (formerly Snapdeal); up to 2.2 million equity shares by B2 Capital Partners and up to 16.1 million equity shares by SB Investment (UK).

A clutch of renowned investors, including Anchorage Capital Fund, Madhuri Madhusudan Kela, Rizwan Koita & Jagdish Moorjani, 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 provides 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,” it reads.

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 percent 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 $4 billion in 2027. The growth is fueled by India’s fast-growing e-commerce market (estimated to grow at a CAGR of 25% to reach approx US$ 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 recently expanded 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.