Acetech E-Commerce Ltd IPO

We are 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 our ability to meet increasing customer demand and could adversely affect our business operations, financial condition and profitability:

Our Company does not own a registered office or any warehousing facilities and instead operate from leased premises in Bhiwandi, Bangalore, and Delhi. Our dependence on leased facilities exposes us to risks of non-renewal, termination, or escalation of rental costs, which could disrupt our operations and increase expenses.

Our Company has a negative cash flow in its operating activities for the six months period ended September 30, 2025, financial year ended March 31, 2025 and March 31, 2024, investing activities for the financial year ended March 31, 2023 and Financing activities for the financial years ended March 31, 2025 details of which are given below. Sustained negative cash flow could impact on our growth and business.

Our business model is built on identifying and rapidly commercializing trending products, which inherently have short life cycles and uncertain demand trajectories. While this approach allows us to capture early momentum, it also creates unpredictability in revenues, risk of obsolescence, and exposure to working capital pressures.

We have Certain litigations involving our Company, for which case papers are not currently available, could adversely affect our business, financial condition and results of operations.

We generate a significant percentage of our revenue from few clients. The loss of any one or more of our major clients would have a material adverse effect on our business operations and profitability.

We rely on a limited number of key vendors and marketplace partners for sourcing certain products. Our Company has not entered into long-term supply arrangements with these vendors. Any disruption in our ability to procure products at competitive prices, or within required timelines, could adversely impact our product availability, business operations, results of operations and financial condition.

There are certain discrepancies / errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956 / 2013. Any penalty or action taken by any regulatory authorizes in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

A significant portion of our revenues is generated through aggregator platforms where product visibility and sales depend on search algorithms, sponsored placements, and evolving platform policies. Any unfavourable changes in these mechanisms, or decline in consumer usage of these platforms, could materially reduce our sales volumes and profitability.

Our hybrid fulfilment model, which integrates warehousing, self-shipping and third party dropshippers involves significant operational complexity and multiple potential points of failure. Any disruption in warehouse or fulfilment operations could materially and adversely impact our ability to deliver products