Unicommerce eSolutions Limited IPO

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They are India’s largest e-commerce enablement Software-as-a-Service (SaaS) platform in the transaction processing layer, providing end-to-end management of e-commerce operations for brands, sellers, and logistics service providers. Their SaaS suite includes a warehouse and inventory management system (WMS), multi-channel order management system (OMS), omni-channel retail management system (Omni-RMS), seller management panel (Uniware), logistics tracking and courier allocation services (UniShip), and payment reconciliation (UniReco).

Services and Products

Their comprehensive SaaS products streamline e-commerce operations, ensuring efficient and timely order processing. These tools are vital for managing inventory, processing orders, minimizing fulfillment costs, handling returns, and maintaining data accuracy across multiple sales channels. Their modular products cater to various business sizes and industries, offering features like inventory management, order fulfillment, procurement, and vendor management. Clients can configure these products to suit their specific workflows, ensuring adaptability to changing market needs.

Market Dynamics

The growth of the e-commerce enablement SaaS industry is closely tied to the expansion of e-commerce sales. As India’s e-commerce sector grows, businesses face challenges like managing inventory across locations, minimizing fulfillment costs, and processing orders from multiple channels. Their SaaS products address these challenges, supporting businesses in scaling their operations efficiently. The increasing complexity of e-commerce operations drives the demand for comprehensive SaaS solutions like theirs.

Conclusion

Their SaaS platform is designed to meet the evolving needs of e-commerce businesses, providing essential tools for efficient operations and growth. By continuously updating their products and adding relevant integrations, they ensure their clients can focus on their business while they handle their e-commerce infrastructure needs.

Objects of the Unicommerce eSolutions Limited IPO:

The company will not receive any proceeds from the Offer, and all the Offer Proceeds will be received by the Selling Shareholders in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer. Total number of shares issue:- i. Offer for sale is 25,608,512 shares.
DRHP of Unicommerce eSolutions Limited IPO
RHP of Unicommerce eSolutions Limited IPO

Unicommerce eSolutions Limited IPO Details:

Open Date: Aug 06 2024
Close Date: Aug 08 2024
Total Shares: 25,608,512
Face Value: ₹ 1 Per Equity Share
Issue Size: 276.57 Cr.
Lot Size: 138 Shares
Issue Price: ₹ 102 - 108 Per Equity Share
Listing At: NSE,BSE
Listing Date: Aug 13 2024

Promoters And Management:

Manoj Kumar Kohli is the Independent Director and Chairman of the Company. He holds degrees in commerce, law, and business administration from the University of Delhi and completed the Wharton Advanced Management Program. He has served as country head at Softbank Group International, chairman of SB Energy-SB Solar Private Limited, and managing director and CEO of Bharti Enterprises Limited. Currently, he is the chairman and managing partner of MK Knowledge LLP. He has received several accolades, including 'Telecom Man of the Year' in 2000, 'Distinguished Alumni' from Shri Ram College of Commerce, and a 'Lifetime Achievement Award' by Voice Data. Kapil Makhija is the Managing Director and Chief Executive Officer of the Company. He holds a bachelor's and master's degree in computer science and engineering from the Indian Institute of Technology, Delhi, and a postgraduate diploma in management from the Indian Institute of Management, Bangalore. Previously, he worked with A.T. Kearney Limited, Oracle India Private Limited, and Qwest Software Services. He oversees growth planning, business execution, and heads the technology and corporate functions of the Company. Kunal Bahl is a Non-Executive Director at the Company and the co-founder and whole-time director of AceVector Limited (formerly Snapdeal Limited). He holds degrees in economics and applied sciences from the University of Pennsylvania. Kunal chairs the Confederation of Indian Industry’s start-up council for 2023-25 and is a member of the National Startup Advisory Council under the Ministry of Commerce and Industry. He has also served on the executive committee of NASSCOM and chaired the Confederation of Indian Industry’s National Committee on e-Commerce in 2020-21. He was named 'Entrepreneur of the Year 2014-15' by the Economic Times and featured in Fortune India’s 40 under 40 list in 2014.

Financials of Unicommerce eSolutions Limited IPO:

Particulars ( In Crores )
2022
2023
2024
Revenue from Operations 59 90 104
Other Income 2 3 6
Total Revenue 61 93 109
Employees Benefit Expenses 42 62 65
Server hosting expense 3 5 5
Other Expenses 8 16 19
EBITDA 7 9 20
OPM (%) 12.01% 10.16% 18.52%
Depreciation & Amortisation 0.5 0.6 2
EBIT 7 9 18
Finance Cost 0 0 0.4
PBT 7 9 17
Tax 1 2 4
PAT 6 6 13
NPM (%) 9.79% 6.97% 11.95%
No.of Shares 10.24 10.24 10.24
EPS 0.58 0.63 1.27

Comparison With Peers:

Note :- There are no listed companies in India or abroad whose business portfolio is comparable with this business

Recommendation on Unicommerce eSolutions Limited IPO:

Review and Recommendation of Unicommerce eSolutions by team IZ is 6/10. 1. Unicommerce eSolutions Limited is an e-commerce enablement Software-as-a-Service (SaaS) platform operating at the transaction processing or "nerve centre" layer. Their platform facilitates comprehensive management of e-commerce operations for brands, sellers, and logistics service providers. 2. Catering to both enterprise and small and medium-sized business (SMB) clients, they provide an end-to-end solution for post-purchase e-commerce operations through a suite of SaaS products. These include: i. Warehouse and Inventory Management System (WMS) ii. Multi-Channel Order Management System (OMS) iii. Omni-Channel Retail Management System (Omni-RMS) iv. Seller Management Panel (Uniware) v. Logistics Tracking and Courier Allocation (UniShip) vi. Payment Reconciliation (UniReco) 3. Product Features and Benefits Their modular suite of products is designed to address the diverse needs of retail enterprises of all sizes, both online and offline. Key features include: i. Inventory Management and Visibility                              ii. Order Management iii. Procurement and Vendor Management                       iv. Returns Management Their products are highly configurable, allowing clients to tailor them to specific workflows. Additional sub-modules, such as procurement management, invoice management, and logistics management, further enhance operational capabilities. Clients prefer their SaaS solution due to its adaptability to changing market needs and emerging business integrations. 4. Competitive Landscape Key competitive factors in the market include: i. Comprehensive Platform Offering                                ii. Data Quality and Accuracy iii. Ease of Use and Deployment                                      iv. Tangible Benefits and ROI v. Data Privacy and Security                                             vi. Sophistication of Solutions 5. The Revenue has Increased from Rs.59 Crores in FY22 to Rs.104 Crores in FY24. 6. The EBITDA has Increased from 7 Crores in FY22 to 20 Crores in FY24. 7. The PAT has Increased from 6 Crores in FY22 to 13 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.95, and EPS is 1.27, 9. Market Capitalization is 1106 Crores and P/E is 84.59x based on FY24.

Lead Manager of Unicommerce eSolutions Limited IPO:

  1. CLSA India Private Limited
  2. IIFL Securities Ltd

Registrar of Unicommerce eSolutions Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Unicommerce eSolutions Limited Mezzanine Floor, A-83, Okhla Industrial Area Ph-II, New Delhi 110 020, Phone: +91 9311749240 Email: complianceofficer@unicommerce.com Website: http://www.unicommerce.com/

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