Shopclues raises undisclosed funding which brings it at the same level as Snapdeal with market value of Rs. 7,300 crore
Bengaluru, India | Red Newswire | Jan 13, 2016 Last Updated at 3:33 PM IST.
Shopclues was the last name to enter into the e-commerce business, but certainly not the last to make it to the top list. The company has raised an undisclosed amount of funds which now has increased its valuation to Rs. 7,300 crore i.e., $1.1 billion.
The funding round was led by Singapore’s wealth fund GIC. The company said that this is its last fundraising and next year it will go for public listing.
This now makes Shopclues as one of the serious competitors in the market which is expected to reach $36 billion by next year according to Goldman Sachs.
Sanjeev Aggarwal, MD at hellion Venture Partners said, “They are a bazaar like Sarojini Nagar in Delhi versus other ecommerce companies that are like a modern shopping mall.”
The average selling price of Shopclues is Rs. 700. On the other hand this is Rs. 4,000 for Snapdeal. Harminder Sahni, founder of Wazir Advisors says, “The valuation is not out of whack given that they have been consistently growing without burning much capital as compared to others.”
Shopclues said that its GMV has increased 4 folds since last year and it targets to reach $3 billion by next financial year.
The company plans on using the funds to add new product categories and align with more small merchants.
Ravi Balasubramanian, Head of Asia Equities at GIC said, “We are confident that Shop-Clues’ merchant-first mindset and solid management team will enable the company to expand its reach, especially in Tier-2 and Tier-3 cities.”
Source: ET Bureau