Is Jasper Infotech Pvt Ltd IPO a Good Investment Opportunity?

Key Highlights

• Jasper Infotech Pvt Ltd, also known as Snapdeal, is one of India’s leading e-commerce platforms
• The company offers a broad range of products to its customers
• It has a track record of strong governance practices and is backed by marquee investors

With India emerging as one of the strongest economies amid global turmoil, companies across industry verticals are looking to ride this growth through initial public offerings (IPOs). Jasper Infotech Pvt Ltd, better known as Snapdeal, is among the several companies looking to get listed on Indian stock exchanges through IPO. Does this IPO merit your attention, and should you invest in it? Let’s find out.

About Jasper Infotech Pvt Ltd

Jasper Infotech Pvt Ltd, established in 2007, is better known as Snapdeal. It operates in the e-commerce domain and offers diverse products in several categories, such as fashion, home, beauty, personal care, and general merchandise. It has revolutionised the shopping experience for customers through its personalised, multilingual interface and state-of-the-art technology platform. By providing the most suitable products to customers, the company has delivered significant value to its customers over the years.

India’s e-commerce market on a growth trajectory

India has one of the rapidly-growing e-commerce markets globally, projected to reach USD 150 billion by 2026 [1]. This is because of several factors, including increased smartphone penetration, rising affluence, and affordable data prices, among others.

E-commerce adoption has reached nearly 100% of pin codes in India, with more than 60% of transactions originating from Tier-II and smaller towns. Tier-II and Tier-III cities, comprising almost half of all shoppers, contribute three out of every five orders for leading e-retail platforms. The sector has also witnessed an increase in PE/VC funding, with a two-fold increase to USD 15.4 billion in 2022 from USD 8.2 billion in 2020 [2].

Jasper Infotech Pvt Ltd is well-poised to ride this e-commerce growth because:

• It’s one of India’s most extensive value-centric e-commerce platform

The company is one of India’s largest pure-play value e-commerce platforms that has significantly impacted the country’s online retail landscape. It has carved a niche by prioritising affordability and diverse product offerings. The platform’s emphasis on value is in sync with the preferences of a vast and price-conscious consumer base. It has and continues to play a pivotal role in shaping the shopping experience for millions.

• It offers a broad range of reasonably priced value merchandise

Snapdeal offers a diverse array of value merchandise at a cost-effective price point. The platform curates a wide selection of products from a network of quality-focussed sellers. This makes it a go-to destination for consumers seeking value for their money. With a focus on customer satisfaction, the company ensures competitive pricing and maintains stringent standards for sellers in its network. This has contributed to its popularity.

• Purchasing journey guided by AI and ML

To enhance customers’ shopping experience, the company uses artificial intelligence and machine learning. With them, it assists customers in finding out the products they are looking for on its platform. Also, the platform is mobile-friendly for better user engagement. By leveraging AI and ML, the company fosters a personalised shopping experience for its users.

• User-friendly and multi-lingual support system

Snapdeal has emerged as a customer-centric e-commerce platform. This is mainly because of its user-friendly and multi-lingual support system, which supports multiple languages. Customers can get their queries solved through numerous channels, such as WhatsApp, FAQs, interactive voice response (IVR) and conversations with live agents. Be it product-related queries or general support, Snapdeal's robust customer support goes a long way in enhancing the shopping experience for its users.

• Proven track record of strong governance practices, proficient management team and renowned investors

Snapdeal is known for its strong governance practices, which have supported its growth over the years. At the same time, its management team boasts highly skilled and competent individuals who are well-versed in e-commerce and technology. The team has industry veterans who have worked with leading firms. It also has an array of marquee investors, such as BlackRock, SoftBank, Intel Capital, eBay, etc. These have collectively contributed to the company's success over the years.

Should you invest?

Jasper Infotech Pvt Ltd has the potential to benefit from a thriving e-commerce market that’s expected to reach new heights in the coming days. With the company being a household name, investing in its IPO can help you grow wealth in the long run. That said, you need to go through the draft red herring prospectus to know the potential risks. Also, ensure you accurately gauge the valuations before investing.