Shopclues seeks additional funding and creative partner to scale further

After more than a year and half of operations, online marketplace Shopclues which was till now thriving on performance based marketing and less of brand building is now convinced about the need of creating a mass appealing consumer brand and is looking to engage a creative partner for the first time. Shopclues has been managing its online and ATL campaigns in-house as of now.

Sandeep Aggarwal, believes that getting a creative partner will help them evaluate their creative options for branding and how they would like Shopclues to be perceived in mass markets.

Shopclues has showcased a steep growth since its beginning and now looking for ways to scale further. Iamwire caught up with Sandeep, CEO, Shopclues to understand about their marketing philosophies that helped them come this far.

Can we know more about the marketing techniques used by Shopclues and your learnings from them?

Sandeep: We believe that we have the lowest cost for acquisition for a new customer  for any ecommerce company in India. This has only become possible because of our three marketing philosophies:

1) Spend marketing budget in performance based marketing vs impressions or clicks

2) Marketing is more mathematics than anything else.

3) We will not spend our money where we can not measure it.

So ROI, data driven approach and measurability are the three value pillars or our marketing spend. So we have a mix of social, email, search, deals and affiliate.

What are Shopclues’s marketing plans for the year 2013?

Sandeep: We think to generate the most compelling ROI on our marketing spend for any Ecommerce company in India. We want to use our marketing strength to build ShopClues as a brand further. We are primarily digital marketing type of people but we sometime go for hoardings or small offline spots on opportunistic basis. Our 2013 marketing plan is to drive over 150 millions traffic in 2013 and evolve as a stronger brand this year.

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Also according to reports, Shopclues is looking to raise USD 30-50 million in private equity investments and is in talks with PE players like Warburg Pincus, SoftBank, Digital Sky Technologies for the same and is expected that it will close the funding round by end of this year. Sandeep Aggarwal had even said that they will be looking at this round as a growth funding and company also plans to go for an IPO by 2016.

Till now Shopclues had raised USD 15 million in funding, which includes the recent Series B round in which it has raised USD 10 million from Helion Venture Partners and Nexus Partners, along-with Teruhide Sato, CEO of

The company expects to cross its GMV to about USD 1 billion with a net revenue of about USD 100 million by 2016 before going for an IPO.

Though Shopclues was among the first few to start a marketplace model in India, the recent shifts to marketplace model by multiple players such as Snapdeal, Flipkart, Yebhi and launch of in India might have created a competitive situation to seek additional funding to stay in top few.

Also the heavy backup and money pumped in Flipkart which raised USD 200 mn & Snapdeal which raised USD 50 mn from ebay Inc. and others, might have created the above needs.

Read this to know – What Shopclues Founder thinks about Amazon entry in India and how he can still compete.

  • Theman

    i dont see any realistic chance if your strategy is face-to-face confrontation with companies that have infinitely deep pockets, unless you manage to keep on raising. A market place’s core competitive advantage can only be reach and resulting network externalities, similar to building a railway network; it can only have 1 winner.