Online shopping Marketplace, ShopClues.com has raised INR54 Crore ($10 milllion) from two private equity firms Helion Venture Partners and Nexus Partners, along-with Teruhide Sato and CEO of Netprice.com.
Nexus Venture Partners had previously led the Series A investment in Shopclues last year. With this round, Shopclues has raised over $15 million in capital so far. Anup Gupta from Nexus had joined the board last year, which has now been expanded with Sanjeev Aggarwal from Helion. Series B investors include VC firms Helion and Nexus and also a leading Japanese Internet company. In Feb 2012, the company had raised Series A from Nexus and founder of one of the largest marketplaces in the world. Prior to Series A, ShopClues had raised a round in August 2011 from marquee angels including and early employees of companies like Google, Netscape and many serial entrepreneurs from Silicon Valley.
“We believe that the time is ripe for smaller business to jump onto the online retail bandwagon, given the deep entrenchment of online shopping among Indian consumers. In fact, smaller business may lose their share of the marketplace if they do not have an online strategy in place. This is why ShopClues.com is relevant, and the platform has already proved invaluable to numerous merchants. On the consumer front, ShopClues.com offers a great comparison engine, a vital shopping tool. Moreover, the growth that we’ve seen in this company is proof of its leadership and vision”, says Sanjeev Aggarwal, Senior Managing Director, Helion Advisors.
Sandeep said, “The investment by these investors is a reflection of the confidence in the business model that has already demonstrated a robust growth in the past 15 months.”
Shopclues which is going through a hyper growth phase, will be using these funds for scaling their business, fulfilment and logistics and strengthening their platform, said Sandeep Aggarwal.
Anup Gupta, Nexus Partners, said,“We have been very impressed with ShopClues.com’s differentiated approach to E-Commerce that is highly scalable and capital efficient. Sandeep Aggarwal and the team at ShopClues have single minded focus on execution and are solving fundamental issues for E-Commerce by bringing India centric innovations based on their global learning.”
Unlike a traditional E-Commerce business model, marketplace business model works with buyers on one side and sellers on other side and marketplace acts as platform provider as well as services providers. Shopclues doesn’t have any inventory of its own, it allows thousand of merchants across India to sell online using its platform.
Speaking about the marketplace model in a prior interaction with iamwire, Sandeep said, “Marketplace is tough business model to execute but the right answer to the highly fragmented retail market of India. On one hand you have benefit of no inventory risk on other hand you suffer from challenges of a highly distributed ecosystem. In terms of execution marketplace is tougher than traditional E-Commerce or retail model but requires highly sophisticated technology platform and distributed approach towards services.”
The company had clocked revenue of Rs 35 crore in FY’2012. In January 2013, it had posted a revenue of about Rs 8 crore and handled 1.52 lakh transactions which was 11 lakh in revenue and 200 transactions in January 2012. The company is looking to handle about 30 lakh transactions and also expect the total visitors on it’s website to cross 10 crore, in the coming time.
As per the website, there are 2,000+ global & regional brands, thousands of online stores from leading brands/retailers, and 250k+ products across 550+ categories including mobiles, home appliances, jewellery, health & nutrition, fashion, and many more listed on the website and it ships items to more than 9,000 cities.
It compete with other marketplaces likes Tradus, Snapdeal, Ebay, Ladyblush; recently Infibeam and Flipkart has also introduced marketplace model.
Shopclues.com, launched in July 2011 by Sandeep Aggarwal with two co-founders Sanjay Sethi & Mrinal Chatterjee, claims that it grew 90x in calendar year 2012 in terms of gross revenue, 60x in terms of traffic, and 55 times in terms of number of merchants and that they do close to 5k transactions per day.(December)Category Investments News