[Funding alert] ShopClues raises Rs 7.86 Cr from its parent company
E-commerce platform ShopClues raised a funding of Rs 7.86 crore from its parent company, Clues Network Inc, the company stated in the RoC filings, accessed by YourStory.
On September 11, the Gurugram-based portal issued 4,320 equity shares to Clues Network Inc, at a premium of Rs 18,190 per share, the filings showed.
The company which has nearly 500 employees, in a statement shared with YourStory in July 2019, confirmed that it has reduced its workforce by 50 percent and currently, it is focusing on profitability.
The e-commerce firm posted losses of Rs 208 crore for the year ended March 2018, narrowing from a loss of Rs 347 crore, in the previous financial year. The firm, which has raised about $250 million so far, focuses on Tier II and III cities.
In 2017, the company raised debt capital of $1 million led by InnoVen Capital, and later in August 2018, it raised $16 million from its existing investors. The company’s valuation rose to $1.3 billion with the fundraise.
Recently, ShopClues was in talks with its rival Snapdeal, for a potential acquisition to survive in the hyper-competitive online shopping segment in India. However, Snapdeal decided against the acquisition, as there were concerns regarding some of the findings that emerged from the due diligence conducted by advisory firm EY.
New Delhi-based Snapdeal also received an undisclosed amount in July, from Anand Piramal, Executive Director of the Piramal Group. The e-commerce company showed a strong all-round performance in its FY 2018-19 results.
Snapdeal's consolidated revenue rose to Rs 925.3 crore, as compared to Rs 535.9 in 2017-18, up nearly 73 percent. At the same time, its loss dropped by 71 percent to Rs 186 crore in FY19 from Rs 611 crore in FY18. The platform has recently registered 1,100 sellers from Assam, with a focus on fashion apparel, lampshades, handbags and bamboo products.
(Edited by Suman Singh)