Shopclues closes this year on a high

By: and | Updated: July 30, 2016 3:52 PM

In 2014-15, Clues Network Pvt Ltd, the parent of Shopclues, reported a loss of R101.37 crore on the back of revenues of R79.2 crore, according to a filing with the Registrar of Companies (RoC).

Aiming to be profitable by mid-2017, the company claims it ships 30 lakh products per month with an average order value of R900. Moreover, it generates 70% of its orders from tier 2, 3 and 4 cities, while the remaining 30% comes from the metros.Aiming to be profitable by mid-2017, the company claims it ships 30 lakh products per month with an average order value of R900. Moreover, it generates 70% of its orders from tier 2, 3 and 4 cities, while the remaining 30% comes from the metros.

Tiger Global-backed e-commerce company Shopclues reported revenues of approximately Rs 900 crore for the year ended March 31, 2016, according to Radhika Aggarwal, co-founder and chief business officer of Shopclues. The company reported a gross merchandise value (GMV) of $1.2 billion during the year and earned 12% of GMV as revenues, Aggarwal told FE.

In 2014-15, Clues Network Pvt Ltd, the parent of Shopclues, reported a loss of R101.37 crore on the back of revenues of R79.2 crore, according to a filing with the Registrar of Companies (RoC).

Shopclues, which largely sells unbranded products, generates 50-55% of its revenue from categories such as fashion & lifestyle and home & kitchen, while mobile electronics accessories contribute 35% to the top line.

Aiming to be profitable by mid-2017, the company claims it ships 30 lakh products per month with an average order value of R900. Moreover, it generates 70% of its orders from tier 2, 3 and 4 cities, while the remaining 30% comes from the metros.

Aggarwal says that for Shopclues, the contribution of products that are paid for in cash is smaller than it is for other e-retailers.

“We run a loyalty programme called CluesBucks. Under this, on every pre-paid order, a customer get 2% CluesBucks, which can be further redeemed for a new purchase,” she says.

Shopclues currently has 5 lakh merchants on its platform and plans to take the number to 10 million by the end of 2020.

The company aims to close FY2016-17 at a GMV of $3 billion. Going forward, the company is also looking at earning an additional 30% non-transactional revenue from various technology services it provides to its merchants and its native advertising platform AdZone. The company launched its native ad platform AdZone last week.

“The idea is to create a point of sale for our merchants. For example, we allow our merchants to create their own microsite through the service called ‘Mysite’. When a customer places an order on the merchant’s site, she is directed to the Shopclues site for payment. The microsites are like their window to display their products,” explains Aggarwal.

Moreover, post-acquiring Bengaluru-based start-up Momoe Technologies early this month, to build payments business, Shopclues is now looking at more acquisitions. “We are looking at acquiring a merchant-focussed data analytics firm. This will help

our merchants to manage their stock, orders, etc in an efficient manner,” says Aggarwal. Additionally, the company plans to acquire a hyper-local firm to sell dairy needs and home & kitchen products.

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