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Snapdeal to shelve $152 million IPO amid meltdown in tech stocks

SoftBank-backed e-commerce firm Snapdeal decided to pull the plug on its $152 million IPO, the company told Reuters, making it the latest casualty of a meltdown in tech stocks that has soured investor sentiment.

Snapdeal filed its initial public offering (IPO) regulatory papers for approval in December 2021, a year that saw many stock market debuts and record fund raising by Indian startups. But many are delaying IPOs amid a stock market rout that has raised concerns over frothy tech valuations.

Snapdeal, which competes with larger rivals Amazon and Walmart's Flipkart in India's booming e-commerce space, filed a request this week with the country's market regulator SEBI to withdraw its IPO prospectus, said one source with direct knowledge of the matter.

"There is no appetite for tech stocks right now," said the source, who added that SEBI has been told about the prevailing market conditions and certain other strategic decisions that contributed to the change in IPO plans.

In a statement to Reuters, Snapdeal said it has decided to withdraw the IPO prospectus "considering the prevailing market conditions", without elaborating. It adding that Snapdeal may reconsider an IPO in future depending on its need for capital and market conditions.

New Delhi-based Snapdeal was started in 2010 by Wharton alumnus Kunal Bahl and Indian Institute of Technology graduate Rohit Bansal. The company says it caters to the so-called value e-commerce segment by selling "value-for-money", or more affordable products via its shopping website and app.

The first source added that Snapdeal has not decided on any new timeline for when it may refile its IPO.

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