Gurgaon based E-commerce platform Shopclues, has raised an undisclosed amount of funding in its Series E round led by GIC, the largest sovereign wealth fund of Singapore. Existing investors including fund Tiger Global Management and Nexus Venture Partners participated in this round of funding.
Founded in 2011 by former Wall Street analyst Sandeep Aggarwal, ex-eBay executive Sanjay Sethi and Nordstorm executive Radhika Ghai Aggarwal, Shopclues.com has now become India’s latest startup unicorn like Ola, Snapdeal, Flipkart, Quikr, Zomato and Paytm—a privately held firm valued at over $1 billion.
The capital raised will be used to focus on building and rolling out new products to enable the SME merchants to digitize their business and to further entrench itself as the e-commerce operating system on the cloud.
“Today, we are the dominant player in low price-point and unstructured categories such as lifestyle, home, kitchen, electronic & automotive accessories, etc. Our focus on selection, value and trusted shopping for Indian middle-class consumers has given us tremendous scale with a rapidly growing buyer & merchant network. We are confident that our capital efficiency & execution will make this our last fund raise before we become profitable with the eventual IPO in 2017,” Radhika Aggarwal said in the press release.
According to the firm, ShopClues has seen its gross merchandise value, or the value of goods sold without factoring discounts and returns, increase over four times since last year. We are shipping out over 3.5 million items on a monthly basis, attracting traffic of more than 100 million visits a month, it said. ShopClues said it expects to turn in profits in another year.
“ShopClues has consistently demonstrated that hyper-growth and strong business fundamentals are not mutually exclusive. The recent addition of GIC and the continued strong support from our existing investors is a validation of our capital efficiency with a clear path to profitability. This investment will enable us to double our focus on digitizing our merchants’ businesses so that they scale to fully leverage the opportunity online commerce provides them,” said Sanjay Sethi, CEO & co-founder, ShopClues.