DRHP Filing by Unicommerce ESolutions: A New Chapter in E-Commerce SaaS

Unicommerce ESolutions, a leading e-commerce enablement SaaS platform for businesses, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on January 6, 2024. The company plans to raise INR 1,500 crore through an initial public offering (IPO) of equity shares.

About Unicommerce ESolutions

Unicommerce ESolutions was founded in 2012 by Ankit Pruthi, Karun Singla, and Vibhu Garg, alumni of IIT Delhi. The company provides end-to-end e-commerce solutions for online sellers, brands, retailers, and warehouse owners. Its products include order management, inventory management, warehouse management, shipping management, and omnichannel solutions. The company claims to have over 10,000 customers across 10 countries, processing over 120 million orders annually.

The company was acquired by Snapdeal Limited, an e-commerce company in India, in 2015. However, in 2018, Snapdeal sold its stake in Unicommerce to Infibeam Avenues Limited, a digital payments and e-commerce technology company. In 2020, Unicommerce raised INR 100 crore from Alpha Wave Incubation (AWI), a venture fund backed by Abu Dhabi’s state entity ADQ.

Financial Performance and Growth Strategy

According to the DRHP, Unicommerce ESolutions reported a revenue of INR 67.8 crore for the financial year ended March 31, 2023, up from INR 40.9 crore in the previous year. The company also turned profitable, with a net profit of INR 8.9 crore in FY23, compared to a net loss of INR 13.4 crore in FY22. The company’s EBITDA margin improved from -25.9% in FY22 to 19.7% in FY23.

The company intends to use the net proceeds from the IPO for funding organic and inorganic growth initiatives, enhancing its brand visibility and awareness, and general corporate purposes. The company’s growth strategy includes expanding its product portfolio and customer base, entering new geographies and verticals, investing in technology and innovation, and pursuing strategic partnerships and acquisitions.

Industry Outlook and Competitive Landscape

The e-commerce industry in India is expected to grow at a compound annual growth rate (CAGR) of 27% from 2020 to 2025, reaching USD 200 billion by 2025. The growth drivers include increasing internet penetration, rising disposable income, growing adoption of smartphones, changing consumer preferences, and supportive government policies.

The e-commerce SaaS market in India is also expected to grow at a CAGR of 36% from 2020 to 2025, reaching USD 1.6 billion by 2025. The growth drivers include the increasing demand for cloud-based solutions, the need for cost-effective and scalable solutions, the emergence of omnichannel retailing, and the rising competition among e-commerce players.

Unicommerce ESolutions faces competition from other e-commerce SaaS providers such as Vinculum Solutions, Browntape Technologies, Anchanto Services, EasyEcom Technologies, and Shopify India. The company differentiates itself by offering a comprehensive and integrated platform that covers the entire e-commerce value chain.

Key Risks and Challenges

Some of the key risks and challenges faced by Unicommerce ESolutions are:

  • Dependence on third-party service providers such as marketplaces and shipping partners
  • Regulatory uncertainties and changes in the e-commerce sector
  • Cybersecurity threats and data breaches
  • Intellectual property rights infringement and litigation
  • Competition from existing and new entrants
  • Customer retention and satisfaction



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