Ecommerce platform ShopClues narrows losses to Rs 68.58 Cr in 2018-19
Ecommerce platform ShopClues narrowed its losses to Rs 68.58 crore in the year ended March 2019 compared to the previous financial year.
The company, which is registered as Clues Network, had registered a loss of Rs 208.14 crore in 2017-18, according to documents sourced by business intelligence platform Tofler.
ShopClues' revenue from operations also declined 24.7 percent to Rs 204.07 crore in 2018-19 from Rs 271.2 crore in 2017-18, it added. Its total revenue fell 23.3 percent to Rs 209.46 crore in 2018-19 from Rs 273.30 crore in the previous financial year.
When contacted, ShopClues co-founder and CEO Sanjay Sethi said that in 2018-19, the focus was clearly on reducing losses.
"With revenues remaining relatively flat for us, we have been able to reduce the losses by 67 percent. Following the merger with Qoo10, we strongly feel that ShopClues, with our differentiated position as a value-for-money marketplace and our thriving ecosystem of more than seven lakh small and medium merchants, will now have access to global markets via their strong presence in Southeast Asia," he added.
In October, ShopClues announced inking an all-stock deal with Qoo10 to merge operations with the Singapore-based firm.
The collaboration, it had said, would bring "new strategic opportunities for both companies as it opens up cross-border opportunities for consumers and sellers across Asia". The terms of the deal were not disclosed.
Qoo10 is an ecommerce platform in Southeast Asia that serves small and medium enterprises through its localised online marketplaces in Singapore, Indonesia, Malaysia, China, and Hong Kong.
ShopClues says more than 700,000 small and micro-merchants on its platform will be able to access global markets via Qoo10. Similarly, Qoo10’s merchants and its cross border logistics business will get access to the large Indian market with their high-quality, value-for-money products.
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.