>ShopClues- Profitability is the Target

ShopClues- Profitability is the Target

E-commerce has change the life of the buyers in the past few years. Online shopping is considered to be very easy, convenient and affordable with huge discounts and offers a wide range of varieties.

ShopClues is one of the famous online shopping sites. There were many speculations about the Shop clues future plans. According to Shop clues CEO Sanjay Sethi, ‘the company has discussed with multiple e-commerce companies and assured the company’s employee that ShopClues is on way to profitability and this year the additional funds has been raised to $16 million. In a recent blog posted by the ShopClues which states that ‘ShopClues will reach its break even till end of the summer holiday season.’

In the past week, company’s mail went out to the employees and reveals about the potential sales and laying of several employees. According to a report for potential sales, Shopclues has held talks with the e-commerce’s famous giant the e-bay. Sanjay Sethi reveals that the company’s burn had came down to about half a million dollars in the past month from $5.5 million in last year.

In a blog post by ShopClues on its key metrics, which says that it denied the speculation about its possible acquisition? ShopClues also said that its contribution margin per order is about 65 rupees and had 40 million customers.

The company will stick to its core strategy of connecting SME’s which are in thousands to the millions of consumers in manner of capital efficiency. In a blog ShopClues posts that it is very close to its break-even point. With minimum perfection in its scale, fixed costs and strategy, the company will reach the milestone in the holidays season itself. In a mail to ShopClues employees which reveals about the profitability goals and state that to sustain Company has enough funds till then. Sanjay Sethi said “This year we raised $16 million additional funds, which is more than sufficient to get us to profitability and our growth targets.”

ShopClues has raised the bridge of 10 million dollars from the existing investors and from Singapore’s GIC received a fresh round. ShopClues had also received $1 million from its parent company which is US based.

The company will soon launching in countries like USA and neighboring countries like Nepal, Sri Lanka and Bangladesh. ShopClues denied the questions about discussion with the e-commerce giant like Rakuten, the Japanese e-commerce company and the very famous e-bay. The company’s revenue has gone up to $ 42 million in the financial year 2018 from $ 28 million in the financial year 2017. ShopClues seems to focus on profitability right now.

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