Unicommerce eSolutions Limited IPO: Get Date, Price, Review and Details

Introduction:

Unicommerce eSolutions is an e-commerce enablement Software-as-a-Service (“SaaS”) platform in the transaction processing or nerve centre layer. The company enable end-to-end management of e-commerce operations for brands, sellers and logistics service provider firms. The company provides a comprehensive suite of SaaS products that include (i) the warehouse and inventory management system (“WMS”); (ii) the multi-channel order management system (“OMS”); (iii) the omni-channel retail management system (“Omni-RMS”); (iv) seller management panel for marketplaces, housed in company’s platform, Uniware; (v) recently introduced post-order services related to logistics tracking and courier allocation (“UniShip”); and (vi) payment reconciliation (“UniReco”).

IPO Details:

Objectives of Issue:

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.

Key Strengths:

• Long-term relationship with clients – The company's versatile technology offerings have enabled it to build a large and steadily growing base of valuable clients across the retail and e-commerce sectors in India and internationally. The company is consistently achieving an NRR of over 100% reflects robust revenue growth from existing enterprise clients as their business expands on our platform.

• Capability to upsell and cross-sell – The company's clients have demonstrated increasing interest in expanding their business engagements over time. On average, the company has successfully upsold products to 45 clients annually, transitioning them from the standard or professional plans within the revenue model to the enterprise plan or a combination of the enterprise plan with other offerings.

• Consistent track-record of fast, profitable growth with strong cash flows over the past three financial years- The company's financial performance has shown positive momentum, with revenue nearly doubling over three years and improvements in EBITDA and PAT margins. These strong results have contributed to an increase in ROCE and RONW by approximately 14% and 4%, respectively, over the same period.

Risks:

• Business Growth co-related with growth of the ecommerce industry in India– The company's revenue is driven by transaction volumes on e-commerce platforms, closely tied to the growth of online sales among its clients. Demand for the company's products is linked to the expansion of India's e-commerce sector, fueled by the rise of e-marketplaces, a growing middle-income segment, and accessible, reliable internet. If e-commerce growth slows in India, the company’s business may be adversely affected.
• Over Dependence on Top 10 clients- The company business is subscription-based, and clients are not obligated to renew and may not renew their subscriptions after their existing subscription contracts expire. The company top 10 customers contribute more than 30% of the revenue. In Fiscal year 2022 company lost 2 of its top 10 customers which resulted in loss of revenue aggregating to 4.8%.
• Seasonal Business: The company’s business experiences seasonality aligned with e-commerce patterns and holidays in India. Special promotional campaigns by e-commerce marketplaces often lead to volume peaks in our services. Historically, the third quarter of the fiscal year has been our highest volume period due to these seasonal effects. Any disruption in the third quarter could affect its business operations
• Over Reliance on Third party service provider- The company depend on various third-party service providers and key vendors to support our platform and certain operational services. These third parties are exposed to general business risks, including system downtime, cyberattacks, fraud, natural disasters, human error, and other factors that could lead to unexpected disruptions. Any such interruptions from these vendors could adversely affect the company operations.

Financial Snapshot:

Particulars	Year ended March'24	Year Ended March'23	Year Ended March'22
Revenue ( In Millions)	1,036	901	590
Growth	15%	53%
EBITDA (In Millions)	144	65	50
Growth	121%	30%
PAT (In Millions)	131	65	60
Growth	102%	8%
EBITDA Margin	14%	7%	9%
PAT Margin	13%	7%	10%
ROCE	26%	11%	11%
ROE	19%	12%	15%

KPI comparison with Industry Peers

The company does not have any listed peers in India hence it is not possible to compare company's KPI with any industry players.

 

 

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