AceVector Ltd

AceVector Ltd IPO review covering Snapdeal, Unicommerce, financials, growth prospects, valuation, business performance and key risks investors should consider.

AceVector Ltd IPO Review, GMP, Price & Analysis

Acevector is a holding company for the Snapdeal marketplace, a 26.1% stake in Unicommerce and the Rangita brand. Snapdeal makes up most of what investors are paying for, and it is where our concerns lie. Value e-commerce rewards scale, and Snapdeal is a fraction of its nearest competitor. Its NMV is 2.63% of Meesho’s and its customer base 4.62%. Snapdeal, Meesho, Flipkart and Amazon have all moved to zero-commission models, and Snapdeal’s take rate has fallen from 39.9% to 26.9% of NMV in two years. The company made an EBITDA loss of INR 49.5 cr in FY26, with adjusted EBITDA loss widening from INR 36.7 cr in FY24 to INR 50.3 cr in FY26. AceVector’s operating cash flow was negative in each of the last three years, a cumulative INR 83.9 cr, funded partly by selling Unicommerce shares worth INR 210 cr. 63% of the INR 287 cr fresh issue will go to Snapdeal’s marketing and Cloud costs.

Unicommerce is a better business, but its benefit to AceVector is limited and it faces challenges of its own. AceVector owns 26.1%, receives no dividends and cannot use its cash. At Unicommerce’s current share price of INR 83, AceVector’s stake is valued at INR 244 cr, only 14% of AceVector’s IPO market cap. Revenue growth has slowed to 14.3% after the Shipway acquisition, while EBITDA margin has fallen to 10.6% from 18.7% a year ago. The IPO ask valuation is INR 1,741 cr (INR 1,782 cr fully diluted). After adjusting for the Unicommerce stake, investors are paying INR 1,538 cr for the loss-making Snapdeal and Stellaro businesses, or INR 1,219 cr on an EV basis. This implies a high P/S and EV/sales valuation for businesses that are still loss-making.