ShopClues raises $16 mn from GIC, others

Clues Network Pvt. Ltd, which operates online marketplace ShopClues has raised Rs 110 crore (about $16 million) in fresh capital from a few existing investors, a company executive said on Friday.

The investors include Singapore sovereign wealth fund GIC Pte Ltd and media enterpreneur-turned-investor Ronnie Screwvala's Unilazer Ventures, the executive said, asking not to be named.

The executive also said that ShopClues CEO Sanjay Sethi announced the fundraise in an internal email he sent out to employees earlier this week.

The company had last raised a sizeable amount in funding in early 2016 in a round led by GIC and Tiger Global at a valuation of $1.1 billion. Since then, the company has relied on debt funding from Innoven Capital and an ad-for-equity deal with media house Times Group.

The Mint newspaper first reported the latest fundraise.

Sethi's letter, which also assured employees that the company was well on its path to profitability, came at a time when ShopClues was reported to be negotiating a merger with multiple suitors, including US-based eBay Inc. 

However, in an interview with Techcircle earlier this year, ShopClues co-founder Radhika Ghai had denied any talks of a merger. 

In a separate blog on Thursday, Sethi said that the company grew its revenue from operations to $42 million for the year through March 2018 from $28 million a year earlier. ShopClues narrowed its loss to $31 million (Rs 213 crore at current exchange rates) for 2017-18, Sethi said, without disclosing the year-earlier number.

According to VCCEdge, the data research arm of News Corp VCCircle, the company had narrowed its loss for 2016-17 to Rs 332.7 crore from Rs 383 crore in 2015-16. 

In the blog, Sethi also mentioned key metrics of the company and reiterated the focus on non-metro consumers. He said the company will achieve breakeven by the holiday season and that the current contribution margin per order stood at Rs 65. 

Sethi said the company was looking to increase revenue from its technology offerings, which include enabling small merchants with microsites and online advertising. The ShopClues platform currently generates about 20% of its revenue from its technological and operational services, he said.

*A previous version of this article incorrectly stated that venture capital firm Matrix Partners participated in this funding round.