ShopClues raises ₹110 crore in internal round of funding from existing investors

Gurugram-based marketplace, ShopClues which is run by Clues Network Pvt. Ltd, has raised about Rs 110 crores in an internal round of funding from its existing investors, Mint first reported. The investors include Singapore sovereign wealth fund GIC Pvt. Ltd and Ronnie Screwvala’s Unilazer Ventures, a ShopClues executive said who is familiar with the development asking not to be named.

ShopClues CEO Sanjay Sethi announced the fundraise in an internal email he sent out to employees earlier this week. Further, Sethi revealed his plan to launch the company in the U.S, Nepal, Bangladesh and Sri Lanka. The company has also signed contracts to enable cross-border trade between China and India, said the email.

Sethi also wrote a blog post in which he said, “We closed FY 18 with strong growth in revenue and reduction in losses. Revenue from operations went up to $42mn in FY18 from $28mn in FY17. In the same time period, the losses came down significantly to $31mn in FY18. Since then, there has been a dramatic drop in monthly losses, driven by a positive contribution margin. We are close to break-even today, and with a marginal improvement in scale and fixed costs, we expect to reach this milestone this holiday season.”

Once ShopClues was positioned as one of the mainstream e-commerce players after Flipkart and SnapDeal. However, ShopClues has not managed to win a large cheque since January 2016, when it joined the billion dollar club by raising $100-140 million from GIC and existing investors Tiger Global and Nexus Ventures. Since then, the company has relied on debt funding from Innoven Capital and an ad-for-equity deal with media house Times Group. Prior to this internal funding round, the company had raised about ₹ 50 crores in debt in May 2017.

Earlier, there were rumours about ShopClues holding discussions with Flipkart, Paytm Mall, SnaPdeal and eBay Global for a potential merger, but ShopClues’ co-founder Radhika Aggarwal, however, denied that the company was looking for a buyer.

Founded in 2011 by Sanjay Sethi, Radhika Aggarwal and Sandeep Aggarwal, ShopClues was a strong competitor fighting for the third spot with SnapDeal. ShopClues still has good market tractions with 40 million customers and a contribution margin of nearly Rs 65 per order.