In an interesting development, Singapore-based Qoo10 has acquired Indian ecommerce company ShopClues in an all-stock deal that values around $70-100 million. Shopclues was valued more than one billion US dollars in 2015 which lost momentum after post one of the founders' arrest and subsequent infighting. Thereafter, a proposal for possible merger with Snapdeal was surfaced by the common investor Nexus Venture Partners which was failed to materlised.
Let’s shed light on the Shopclues journey in the Indian market so far.
Journey So far ….
Incepted in 2011 Shopclues’s beta was introduced in India via social media with the human recourse strength of 10 members only.
It was 2012, when this ecommerce marketplace raised Series A funding to expand its reach to more than 4000 pin codes. This time, there was more than 5000 sellers who were registered with this ecommerce marketplace.
By 2013, Shopclues had increased its team size from 10 members to 400. This was also the year when Shopclues introduced National Retail Heritage featuring iconic marketplaces of India under the leadership of Sanjay Sethi as the new CEO of the company.
The company introduced its first wholesale marketplace TVC and introduced its window app.
2016 was historic year for the company when it crossed 100 million monthly visits and acquired payment gateway Momoe.
2018 the company started its offline journey by launching its first store in Lucknow. The offline presence was the part of Omnichannel journey. The offline store had also featured exclusive labels from ShopClues like the Homeberry, MEIA, Baton and Digimate.
2019, Shopclues raises 7.86 cr from its parent company.
Products and Categories
Shopclues sell under more than nine key categories including fashion, accessories and entry-level phones, refurbished branded mobile phones, our private labels in home, fashion & electronics.
With more than 100 million monthly visits, over 20 million listed products, 6,00,000 + merchants, over 7000 online brand stores, ShopClues services 30,000 pin codes across India.
The company had posted the revenue loss of Rs.208 in the last financial year ended on March 2018. Same year, company’s valuation rose to $1.3 billion with the fundraise from its existing investors. This was also the time was Shopclues was in talks with Snapdeal for possible merger.
Shopclues works like any other marketplace. It’s a B2C platform where they charge nominal selling service fee on each successful transaction, and it does not include any setup cost. In an exclusive interview with Sanjay Sethi in 2018 he had informed, “ For the next couple of years our B2C business will continue to grow about 50% YoY will we will be invest heavily into our cross border, private labels. We will be leveraging our 50 million buyer base to expand our social commerce and consumer affiliate programs. B2b retail will also be a growth driver for the next couple of years.”
Shopclues encourages SMES to leverage online channel to expand the reach of their products. It does not require any technical knowledge to sell products on Shopclues.