Indians love shopping, and this is evident with the growing scale of the e-commerce industry in the country. The gross merchandise value of the e-commerce industry is USD 60 billion as of FY 2023. The industry has various segments concerning its stakeholders, such as other businesses and customers.
The growth rally in the e-commerce industry is expected to continue and reach USD 350 billion in FY 2030. However, some retailers still find it tough to manage the functions online. SaaS-equipped products can solve their issue for better management and can also provide an edge over the competitors. India’s SaaS market will reach approximately the mark of USD 38 billion by 2027.
Technology has become our close kin, and the need for such SaaS products has the potential to increase in the coming years. It also highlights a unique investment avenue for investors. Unicommerce eSolutions Pvt Ltd is one such company, which provides a platform for such SaaS-based products for e-commerce management.
About Unicommerce eSolutions Pvt Ltd
E-commerce has become an integral part of our lives in the past few years. However, the smooth functioning of it depends on the amalgamation of various factors. One such factor is, the management of data across various aspects of the e-commerce process.
Unicommerce eSolutions Pvt Ltd provides a platform for integrated Software as a Service (SaaS) products for such efficient management. These products are designed by the company to suit various business sizes and functions. Currently, it is prevalent in the transaction process of e-commerce, meaning it helps businesses operate day-to-day post-purchase smoothly with their technology.
The company has 8,604 warehouses and 2,764 stores in its operations.
Currently, the company has the following products:
- Warehouse and inventory management system (WMS)
It provides an efficient management service for workflow, unit-level tracking, integration, storage operations, logistics, etc.
- Multi-channel order management system (OMS)
It is centralised handling of orders, demand channels, delivery preferences, etc.
- Omni-channel retail management system (Omni-RMS)
It is operated at the point of sale (POS), and enables inventory management, client solutions, sales, etc.
- Uniware – management panel for the marketplace
A marketplace of diverse sellers can be handled centrally through one top management panel. Auth Unicommerce is the token for authentication by partners in Uniware.
- UniShip – post-order service regarding logistics and tracking
It has recently launched. Provides customised solutions for logistics partners and enables delivery and tracking.
- UniReco – payment reconciliation product
It helps with logistics charges, commission reconciliation and its management.
Unicommerce client base
Unicommerce eSolutions Ltd has 795 enterprise clients and 43 international clients. Moreover, its segregation can be as follows:
- 131 marketplaces and WebStores like Nykaa, Flipkart, Meesho, etc.
- 101 logistic partners.
- 11 ERP and POS system
- Strong marquee clients such as Lenskart, Zivame, Mamaearth, Boat, Emami, Pharmeasy, etc.
Unicommerce eSolutions IPO details
This initial public offer (IPO) is totally an offer-for-sale issue, and thus the company will not receive any amount from this. The existing shareholders selling their shares will receive the proceeds from it. Some crucial IPO details are as follows:
| IPO open date | August 6, 2024 |
| IPO close date | August 8, 2024 |
| Price band | ₹102 – ₹108 |
| Lot size | 138 shares |
| IPO size (whole Offer for Sale) | ₹276.57 crores |
| Shares offered | 2.56 crores |
| Listing date | August 13, 2024. |
Source: Unicommerce eSolutions RHP
The minimum investment for retail investors is ₹14,904/-. The Link InTime Pvt. Ltd. is the registrar of this offer. The book-running lead managers are as follows:
- IIFL Securities Limited
- CLSA India Pvt Ltd
The Unicommerce eSolutions GMP (grey market premium) in the market is expected to increase due to the confidence of anchor investors. The issue raised nearly 124 crores from its anchor investors before it was opened for the subscription of regular investors.
Must read: Understanding IPO valuation through relative and absolute methods
Key financials
(Amount ₹ crore)
| Particulars | As of March 2024 | As of March 2023 | As of March 2022 |
| Revenue from operations | 103.58 | 90.05 | 59.03 |
| Net profit | 13.07 | 6.47 | 6.01 |
| EBITDA margin | 13.92% | 7.25% | 8.54% |
| Networth | 68.9 | 51.8 | 41.3 |
| Net Asset Value per share | ₹6.8/- | ₹5.1/- | ₹4.1/- |
| Return on Equity (%) | 18.9% | 13.8% | 8.0% |
| Debt to Equity | 0.58 | 0.57 | 0.42 |
| Operating Cash Flow | 6.00 | 14.57 | 7.82 |
The company has performed with better margins in FY 2024. The growing EBITDA margin indicates positive prospects. The high fixed cost has the potential to catalyse operational leverage for the company.
As of March 2024, the company has a quick ratio of 3.01, which indicates a stable liquidity position. For a similar period, its interest coverage ratio stands at 45.9, indicating a strong solvency position. Moreover, the revenue growth from FY 23 to FY 24 has been nearly 15%. Its growing large client base is the reason for the same. The operating cash flow has reduced over the past year.
Also, read: How to pick winning stocks with quantitative analysis: A beginner’s guide.
Unicommerce SWOT analysis
| Strength | Weakness | Opportunities | Threat |
| Strong client integration in the e-commerce industry. The high annual run rate of nearly 79.1 crores as of March 2024. | Exposure to a large client base may affect their revenue in crunch times. | In India, the transaction process market in the e-commerce space of SaaS products is expected to grow 34% by 2027. | E-commerce is a large space and has many budding competitors for Unicommerce. |
| Strong net profit growth of 102% as of March 2024, compared to FY23. | Focus on expanding the international client base. Revenue from these clients has gone up to 103.58 crores in 2024. | Cyber security is becoming crucial in the tech era today. Threats and expenditures for this may increase in the coming days. |
Bottomline
Unicommerce eSolutions Pvt Ltd is a SaaS company, providing services for e-commerce stakeholders management. Moreover, its current focus is on the transaction process, which is a crucial part. This new entrant in the stock market has positive prospects in terms of its service, client base, financials and industry.
Unicommerce eSolutions IPO may seem an attractive investment for many investors. However, investors should analyse and understand the functioning and overall position of the company in detail before investing their hard-earned money.
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