SaleBhai has just been given an in-principle approval by the Bombay Stock Exchange (BSE) to list on the SME platform. The reports suggest that the IPO is likely to take place next month. SaleBhai will become one of the first companies to raise money through an IPO at such an early stage.
It is a B2C e-commerce marketplace that lets people buy items from various regions of the country, fostering different cultures and traditions. It was founded by Vishwavijay Singh and Purva Kalita in September 2015.
It is expected to raise ₹23.7 crores ($3.48 million) by offering 22,59,600 shares to the market. It means selling 26.58% equity in the market. This startup has already secured ₹10.2 crores($1.5 million) from investors like Times Group Brand Capital and other 71 HNIs.
The money raised will be used to fund the growth of the company. It will be done by expanding customer acquisition, improving their IT platform capabilities and adding more authentic sellers on the marketplace. It will also be used to enhance the customer experience.
SaleBhai provides products from many different categories ranging from regional food products to authentic handicrafts. There are over 400 sellers on its platform belonging to about 100 Indian cities. It uses the marketplace model, reducing costs and over 22% repeat customers are also reported on the platform.
Vishwavijay Singh, co-founder, SaleBhai, said, “With the BSE approving our draft prospectus, we are well on our way of being the first B2C e-commerce company to have a public issue, and we are grateful to our customers, our backers, and our wonderful team members on this remarkable occasion.”
Following the example of SaleBhai, there are many more startups that are looking to raise money through IPO. E-commerce logistics startup Delhivery is looking to launch its IPO in the coming months. IndiaMART is also looking to raise around ₹500 crores ($73.53 million) through IPO.