Shopclues looks to turn profitable by 2017

Shopclues is on the road to profitability, it expects to turn profitable in the first half of 2017. Meanwhile, it claims to have toppled Flipkart, Snapdeal and Amazon India in the leadership game and leads in Tier II and III cities. Its capital raise to value generation ratio is the best.

As Shopclues celebrates its fourth anniversary, its founders Sanjay Sethi, CEO and Radhika Ghai Aggarwal, Chief Business Officer, insist that the company had the largest aggregation of merchants on the platform and maximum stock keeping units (SKUs). Both believe that Shopclues would be the first pure play e-commerce company to turn profitable. Sethi points out that ‘now is the time to conserve’. He believes that major players may see a ‘slowdown in fundraising’ which might lead to a correction in the business model. The focus, as he says, will have to be on profitability and efficiency.

Shopclues raised nearly Rs1,495 crores and till now spent about Rs 390 crores. The company doesn’t have plans to raise fresh funds this year but things might change if it goes in for big acquisitions. Shopclues has been valued at around Rs 7,150 crores. It raised funds from Singapore’s sovereign wealth fund GIC, Tiger Global Management and Nexus Venture Partners. Its gross merchandise value of goods sold is estimated at about Rs 4,875 crores and is set to grow to Rs 19,500 crores next year.