Indian e-retailer Infibeam filed a draft prospectus for an initial public offering (IPO) to raise Rs. 450 crores ($70.69 million), becoming the first of India’s e-commerce companies to list its shares on the domestic market.


Infibeam’s IPO comes at a time of intense competition in India’s e-commerce sector, with high cash burn rates at industry leaders Flipkart, Snapdeal and’sIndia unit raising concerns among investors.

A top Flipkart executive told Reuters in May it was not yet ready for the stock market and the resulting investor scrutiny.

Launched in 2007, Infibeam runs the and websites. Last year, Sony Music bought a 26 percent stake inIndent, the company’s digital entertainment arm.

The company will use the IPO proceeds for expanding business, including setting up a cloud data unit and 75 logistics centres.

Capital markets regulator Sebi last month relaxed its regulations for companies to list and raise funds through a dedicated platform on domestic stock exchanges rather than going overseas.

E-commerce major Snapdeal said Sebi’s move to relax regulations relating to listing on domestic stock exchanges will benefit “India-focused companies” like it in the long-run.

Welcoming the market regulator’s proposed plans to implement e-IPO and start-up specific listings platform, Snapdeal firm said it will provide “much needed access to funds for startups”.

“For us at Snapdeal, we are particularly pleased with this move considering that easing of listings norms will benefit India-focused companies like ours in the long-run,” a company spokesperson said.

According to reports, Snapdeal was looking at American bourses for listing. In 2013, Snapdeal co-founder and chief executive officer Kunal Bahl had talked of a US listing without disclosing any deadline.