SaleBhai will be the first Indian startup at such an early stage to raise money through public route by getting listed on BSE
SaleBhai Internet Limited, the owner and operator of SaleBhai.com, will be the first B2C e-commerce company to have filed a Draft Prospectus (DP) with the SME platform of BSE Ltd.
This step will also effectively make the Ahmedabad-based startup the first to raise money through public route at such an early stage.
This move comes after SaleBhai had already garnered the interest of 71 high net worthindividuals. Most of them were customers who became investors in the company. These existing customers-turned-investors come from various fields such as IT, finance, business and so on. They connected with the ethos of SaleBhai and were quick to invest in this growing business.These customers saw the potential in the unique proposition of this online portal dedicated to fulfilling the needs of migrant communities across India and beyond. By doing so, it also became a platform of discovery for unique regional products across India. Their confidence to invest in the company came from understanding its brand philosophy of taking diaspora communities back to their roots by providing them with authentic foods and other products directly from their hometowns.
This interest from existing customers propelled the company to raise money from general public through an IPO.
Commenting on the IPO, Vishwavijay Singh, Co-Founder, SaleBhai, said, “We started this company to address not just a need, but a sense of belonging. So many of us have come from different parts of the country, come to big cities and gone to different parts of the world, but none of us have forgotten the taste and flavour of home. Our mission – to take people back to their roots for just a moment and connect to their roots – has now helped us build a commercially successful company that is going public. We are proud of this moment, and look forward to having our company listed as we continue getting bigger and stronger.”
For its IPO, SaleBhai is issuing 22,59,600 equity shares, offering 26.58% of the company’s equity in the market, and will be listed on the Bombay Stock Exchange’s (BSE) SME Platform. It is looking to raise ₹23.73crores. It intends to use the funds raised through the IPO towards growing the company through increased customer acquisition, improved IT platform, addition of more authentic sellers as well as product categories, and make the customer experience even smoother and effortless.
Monarch Networth Capital Limited (Monarch) is acting as the issue’s Lead Manager, while Skyline Financial Services Private Limited will act as the Registrar to the issue.
While the company is awaiting BSE approval for the DP, it currently estimates that the IPO is likely to take place in July, 2018. The DP is available on the website of Lead Manager atwww.mnclgroup.com, that of BSE at www.bseindia.com,and of issuer company at www.salebhai.com. Investors are encouraged to read Risk Factors beginning on Page 19 of the Draft Prospectus before Investing.