ShopClues hopes to turn profitable in another 12-18 months

ShopClues’ revenues grew 60 per cent this fiscal compared to the previous year. Losses have are down almost 40 per cent. The eretailer is focusing on pushing its business in fashion and strengthening its position in Tier III cities and beyond. The Gurgaon-based company, which competes with the likes of Flipkart and Amazon, is also confident of turning profitable in the next 12-18 months. Sanjay Sethi Co-founder and CEO says 2017 was spent ensuring that the company has the "right revenue margins" without any discounting or heavy spending on warehousing adding to its costs.

ShopClues' revenue from operations was at Rs 180.3 crore in 2016-17, against Rs 161.4 crore in the preceding fiscal. Its losses were also lower at Rs 332.65 crore for the year ended March 2017 compared to a loss of Rs 383.05 crore in 2015-16. He further added, 2018 will be about continuing the growth. The company became unit economic positive across all categories last year and is looking at hitting profits in the coming fiscal also, the revenues have grown about 60 per cent, while losses have come down by about 40 per cent.

Sethi further explained that about 80 per cent of the company's orders come from tier III cities and that these customers buy 20 per cent more as compared to those in metros. ShopClues co-founder and Chief Business Officer Radhika Ghai says there is enough room in the market for multiple players to grow.

Ghai added people throng both of these locations and are buying. The company is on track to hit profits, which shows that its business model is working well. The e-commerce market in India is underpenetrated at about 2 per cent of the multi-billion dollar retail industry in India and there is room for all the players to grow their business says Radhika Ghai.