Acetech E-Commerce

• Acetech E-Commerce is coming out with an initial public offering (IPO) of 43,70,400 shares in a price band of Rs 106-112 per equity share.
• The issue will open on February 27, 2026 and will close on March 4, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 10.60 times of its face value on the lower side and 11.20 times on the higher side.
• Book running lead manager to the issue is Gretex Corporate Services.
• Compliance Officer for the issue is Vandana Mahesh Chandak.

Profile of the company

Acetech E-Commerce (formerly known as Acetech Ventures) is engaged in the e-commerce business with a focus on drop shipping, teleshopping, and direct-to-consumer strategies. Originally incorporated as a limited liability partnership, the Company was restructured into a public limited company in 2024 and has since developed capabilities in e-commerce management, warehousing, and global selling solutions. The company distributes products through major online platforms such as Naaptol, Shop101, and GlowRoad, as well as through its own dedicated portals. The company’s business model is centred on identifying innovative and trending products and sourcing them primarily from domestic manufacturers and traders, with the majority of procurement taking place within Maharashtra, while also exploring select sourcing opportunities from international markets.

Its core strength lies in anticipating consumer demand by curating products with strong market potential, thereby enabling profitability and growth. The company’s activities span product research and identification, sourcing and procurement, warehousing and fulfilment, e-commerce platform management, marketing and advertising, as well as global selling and cross-border expansion. 

The company’s business model is built on leveraging emerging product trends and recent market developments. Drawing on its experience in product research, the company identifies products with strong potential for consumer acceptance and sources them from manufacturers or traders. These products are marketed digitally to a global audience through social media and other online platforms, enabling broad customer reach and efficient demand generation. While product life cycles are typically short, initial demand is often strong, allowing the company to capture premium pricing and attractive margins.

Proceed is being used for

• Marketing and advertisement expenditure
• Working capital requirements
• Funding inorganic growth through unidentified acquisitions and general corporate purposes

Industry overview

India’s e-commerce industry, valued at Rs 10,82,875 crore ($125 billion) in 2024, is projected to grow to Rs 29,88,735 crore ($345 billion) by 2030, reflecting a compound annual growth rate (CAGR) of 15%. E-commerce refers to the buying and selling of goods and services through online platforms using the internet as the primary medium of transaction. It enables businesses to reach a wider customer base beyond geographical boundaries and offers consumers the convenience of accessing products and services anytime and anywhere. The e-commerce ecosystem typically integrates digital storefronts, secure payment gateways, logistics and delivery systems, and customer support, thereby creating an efficient and scalable model for trade.

India’s e-commerce industry is entering a high-growth phase, driven by rising disposable incomes, rapid digital adoption, strong tier II & III city demand, and a surge in quick commerce growing at 70-80% CAGR, with the D2C market set to cross Rs 8,70,500 crore ($100 billion) in 2025 and overall annual growth projected at 17-22% in 2025. India's e-commerce market is fuelled by 500 million shoppers and increased internet access, especially in rural areas. By FY26, over 1.18 billion people are expected to have smartphones, enhancing digital transactions. Rural areas will drive over 60% of demand, particularly from tier 2-4 towns. India’s e-commerce market is projected to grow 12.5% in 2025 to about $211.6 billion, with expectations of reaching roughly $326.7 billion by 2029, driven by strong online shopping demand and digital payments.

India is set to become the world's second-largest online consumer market by 2030, with approximately 600 million shoppers and significant growth in e-commerce driven by increased smartphone access, urban adoption, and a projected rise in online retail from 25% to 37% of the total market.  Government initiatives like the National Logistics Policy aim to smoothen deliveries to hinterlands, making logistics efficient and cost-effective. Government initiatives like Jan Dhan Yojana, BharatNet Project, and the introduction of Goods & Service Tax (GST) have played a crucial role in shaping India's digital economy. Through its ‘Digital India’ campaign, the Government of India is aiming to create a trillion-dollar online economy by 2025.

Pros and strengths

Unique and Scalable business model: The company has developed a flexible business model centred on identifying short-cycle product trends, sourcing them efficiently, and marketing them digitally across global platforms. This approach allows rapid scaling of high-demand products with minimal inventory risk, enabling timely entry into consumer trends.

Brand development capabilities: Through its subsidiary, Conceptive Brains Private Limited, the company has created niche brands in categories such as personal care, ayurvedic products, and eco-friendly homecare. Complementing this, Acetech Ventures Inc. in the United States strengthens international presence by collaborating with local brands and leveraging a drop shipping model to distribute products across multiple platforms.

Sector experience: With nearly a decade of operating history since 2014, the company has built expertise in consumer demand analysis, product life-cycle management, and execution of e-commerce operations. This accumulated experience supports its ability to adapt quickly to evolving trends and scale operations efficiently.

Risks and concerns

Customer concentration risk due to dependence on top clients: It generates a significant percentage of its revenue from few clients. Revenue from the top 10 customers and platforms accounted for 85.20%, 92.65%, 94.29%, and 98.19% of the total revenue from operations for the six-month period ended September 30, 2025, for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. Its business operations are highly dependent on its top customers, which exposes it to a high risk of customer concentration. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability.

Reliance on third-party aggregator platforms: A significant portion of its revenues is generated through aggregator platforms where product visibility and sales depend on search algorithms, sponsored placements, and evolving platform policies. The total sales through the aggregator platforms in six-month period ended September 30, 2025 was Rs 1,223.22 lakh, which contributed to around 30% of the total sales. The corresponding contribution was 37.03%, 69.67%, and 91.18% for the fiscal years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. Its sales are materially dependent on third-party platforms such as Naaptol, Shop101, and other online aggregators. Success on these platforms is largely determined by algorithms that rank products based on price competitiveness, customer ratings, return rates, and paid promotions. Any unfavourable changes in these mechanisms, or decline in consumer usage of these platforms, could materially reduce its sales volumes and profitability.

Dependence on vendors without long-term supply contracts: The company relies on a limited number of key vendors and marketplace partners for sourcing certain products. Purchases from the top 10 suppliers accounted for 85.79%, 75.57%, 71.96%, and 69.87% of total purchases for the six-month period ended September 30, 2025, for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. The company has not entered into long-term supply arrangements with these vendors. Any disruption in its ability to procure products at competitive prices, or within required timelines, could adversely impact its product availability, business operations, results of operations and financial condition.

Outlook

Acetech E-Commerce is engaged in the purchasing, selling, distributing, trading, acting as an agent, franchising, collaborating, exporting, merchandising, designing, packaging and dealing with all kinds of products, goods, commodities, merchandise accessories and equipment, wellness products and equipments and any other human centric products on the company's online portals or websites as well as through e-commerce internet, stores, stalls or kiosks set up across India or abroad or in any other manner. On the concern side, it is dependent on the procurement of imported products sourced from the People’s Republic of China through domestic dealers. Any disruption in the supply of such products from China may impair its ability to meet increasing customer demand and could adversely affect its business operations, financial condition and profitability.

The company is coming out with a maiden IPO of 43,70,400 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 106-112 per equity share. The aggregate size of the offer is around Rs 46.33 crore to Rs 48.95 crore based on lower and upper price band respectively. On performance front, its revenue from operations increased from Rs 6,024.82 lakh in FY2024 to Rs 7,028.05 lakh in FY2025, representing an increase of 16.65%. Profit after tax increased from Rs 402.14 lakh in FY2024 to Rs 687.97 lakh in FY2025, registering a growth of 71.08%.

Meanwhile, the company’s strategy is focused on consolidating its position in the e-commerce sector by deepening customer engagement, expanding market reach, and strengthening operational resilience. Drawing on its experience in identifying emerging trends and scaling high-demand products, the company aims to sustain growth through marketing initiatives, disciplined working capital management, and selective inorganic opportunities.