Why did Snapdeal postpone its IPO? The founder told the reason for this

Snapdeal IPO Postponed: Domestic e-commerce company Snapdeal was about to bring its IPO in the year 2021, but the company has not yet entered the stock market. Many companies, including the government insurance company LIC, have brought their IPO after that. On the other hand, many companies like Snapdeal have kept postponing their IPOs due to various reasons. Now the founder of the company has talked about the reasons behind it.

Snapdeal IPO postponed for this reason

Snapdeal Founder Kunal Bahl recently talked about this in an interview given to a channel. He said that Snapdeal has taken the decision to postpone the IPO after careful consideration and careful study of the market conditions. He said that seeing the changed market conditions, the company realized that it would not be able to raise as much funds as it expected. For this reason, it was decided to postpone the IPO of Snapdeal.

There has been a decline in funding

Kunal is the founder of Snapdeal as well as an investor. He does seed stage funding in startups through his venture capital company Titan Capitals. He said that not only has there been a decrease in funding from private equity players, but the way companies were able to raise money from the stock market has also decreased.

Investors mean these things

The Snapdeal founder also commented on startups hitting the stock market with much fanfare in the last year or two. He said that it does not matter how much IPO was discussed and how much prominence was given to the listing of shares of new-age digital companies. Now that they are listed in the Indian stock market, investors only care about their cash flow and profit earning potential.

everyone got a lesson

He said that after the famous IPOs of many new-age companies, their fate in the stock market has given a lesson to everyone. This made the entire ecosystem know what is really important and the real reason why all startups are now focusing on profits. Now everyone has realized that the ability to make profits is really going to work.