ShopClues - Connecting Buyers and Sellers
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Shoppers can choose from a wide range of e-commerce possibilities in the vibrant world of online shopping. As more and more consumers become aware of the benefits of these platforms, there has been a notable upsurge. Online businesses have a lot of room to grow in the future, as long as they can recognize and satisfy the changing wants of their customers.
Among these platforms, ShopClues shines as a notable player. Since its founding in July 2011, this Indian online marketplace owned by Clues Network Pvt. Ltd. has been a participant in the e-commerce scene. Sanjay Sethi, Sandeep Aggarwal, and Radhika Aggarwal, the three visionaries behind ShopClues, founded the company in Silicon Valley. It is a prime example of innovation and connectedness in the digital marketplace. With a commitment to providing a unique shopping experience, ShopClues continues to resonate with customers as it evolves in this dynamic online landscape.
In this article, let's explore the world of ShopClues—its founders, business model, revenue model, funding, growth, and more.
ShopClues - Company Highlights
| STARTUP NAME | SHOPCLUES.COM |
|---|---|
| Headquarters | Gurgaon, Haryana, India |
| Sector | Online Shopping |
| Founder | Sandeep Aggarwal, Radhika Aggarwal and Sanjay Sethi |
| Founded | 2011 |
| Website | shopclues.com |
ShopClues - About
ShopClues - Industry
ShopClues - Founder and Team
ShopClues - Startup Story
ShopClues - Mission and Vision
ShopClues - Name, Tagline, and Logo
ShopClues - Business Model
ShopClues - Revenue Model
ShopClues - Challenges Faced
ShopClues - Funding and Investors
ShopClues - Mergers and Acquisitions
ShopClues - Growth
ShopClues - Advertisements and Social Media Campaigns
ShopClues - Awards and Achievements
ShopClues - Competitors
ShopClues - Future Plans
ShopClues - About
ShopClues is a marketplace to establish a connection between buyers and sellers in a managed environment. It offers global and domestic brands, multiple online stores from brands or retailers across various listing categories. The Company provides delivery facilities, a rigorous merchant approval process, and a safe online platform for offline merchants.
ShopClues, the 35th company to enter the Indian e-commerce space, was founded in 2011 and has expanded to employ between 1,001 and 5,000 people in different parts of the nation. Its main office is located in Gurgaon.
By offering a wide selection of goods, such as clothing, electronics, gadgets, kitchen appliances, accessories, and home decor, this online marketplace makes buying easier. User-friendly features like cash on delivery and a variety of payment methods are provided by ShopClues. Through social media sites like Facebook, Twitter, and WhatsApp, users may quickly share their best discoveries with their peers. They also get alerts about interesting sales, discounts, and promo codes, which improves their entire shopping experience.
ShopClues - Industry
The Indian e-commerce sector is expected to reach a valuation of USD 112.93 billion by 2024, indicating a notable trajectory of growth as per the analysis report of Mordor Intelligence. The market is expected to develop at a robust annual rate (CAGR) of 21.5% between 2024 and 2029, with a target market size of USD 299.01 billion at the conclusion of the forecast period. This upward trajectory is ascribed to various factors, including the widespread adoption of smartphones in India, a growing population of tech-savvy consumers, and greater internet usage.
ShopClues - Founder and Team
Founded in July 2011, ShopClues was envisioned by co-founder Sandeep Aggarwal, accompanied by Sanjay Sethi, the co-founder and CEO, and Radhika Aggarwal, the co-founder and Chief Business Officer (CBO). Together, they set the stage for ShopClues to make its mark in the world of e-commerce.
Sandeep Aggarwal
Sandeep Aggarwal is the co-founder of ShopClues.com. With academic achievements, including a Bachelor's degree in Commerce and Business, a Master's in Finance Education from Devi Ahilya University, and an MBA from Washington University in St. Louis, Sandeep has held significant roles such as Associate at Kotak Securities, Senior Financial Consultant at Charles Schwab, and Senior Manager at Microsoft Corp.
His expertise extended to serving as Equity Analyst at Citigroup Investment Research, Vice President and Senior Internet Analyst at Oppenheimer & Co, Managing Director and Senior Internet Analyst at Collins Stewart and Mangaing Director and Senior Internt Analyst at Caris and Company. Notably recognized as the visionary co-founder of ShopClues.com, he is also the Founder and CEO of Droom.in, showcasing his leadership in shaping successful ventures across different industries.
Sanjay Sethi
Sanjay Sethi, the Founder & CEO of Shopclues.com, is an alumnus of the prestigious Indian Institute of Technology, Delhi, where he pursued Software Technology and Computer Science. His academic journey also includes a BTech in Mechanical Engineering from the Indian Institute of Technology (Banaras Hindu University), Varanasi.
Prior to joining the fast-paced world of e-commerce, Sanjay had a number of notable positions, such as Senior Director of Products at eBay Inc., Dev Manager at TradeBeam Inc., and Junior Manager at Steel Authority of India Ltd. Sanjay Sethi, who has a broad professional background and a solid technological basis, has been instrumental in forming Shopclues.com's success and driving its expansion and innovation in the e-commerce space.
Radhika Aggarwal
Radhika Aggarwal, the co-founder and CBO of ShopClues, is a highly accomplished entrepreneur with a robust educational background. She has a post-graduation degree in public relations and advertising and an MBA from Washington University in St. Louis. Radhika participated in a Stanford University executive program, which allowed her to expand her expertise even more.
After over 14 years of working in the US, Radhika Aggarwal has accumulated a wealth of experience in a variety of industries, such as retail, lifestyle, e-commerce, and fashion. Her experience includes positions in strategic planning at Goldman Sachs and marketing at Nordstrom in Seattle. Radhika's leadership at ShopClues is greatly influenced by her diverse experience and strong academic background.
ShopClues - Startup Story
Established in 2011, ShopClues made a bold entry into India's burgeoning e-commerce sector. Founded by the trio of Radhika Aggarwal, Sandeep Aggarwal, and Sanjay Sethi, the platform rapidly gained prominence in a competitive market. Radhika Aggarwal, breaking barriers, became the first Indian woman to join the Unicorn club, contributing significantly to the company's success. With prior experience running FashionClues, a content platform for NRI women, Radhika brought invaluable insights to the venture.
With its headquarters located in Gurgaon, ShopClues entered the Indian e-commerce market as the 35th company. By concentrating on helping tier 2 and tier 3 merchants with product sales and brand development, the platform distinguished itself. ShopClues made history by achieving a $1.1 billion valuation in just few years, earning it a coveted place in the Unicorn Club in 2016.
Even with the company's commercial successes, there were personal changes. According to a 2017 news source, Radhika and Sandeep Aggarwal, the founding couple, separated. They were previously husband and wife. Nevertheless, ShopClues kept growing under the co-founders' capable direction. The story of ShopClues not only highlights company successes but also the dramatic personal and professional obstacles its founders had to overcome.
ShopClues - Mission and Vision
ShopClues embarked on its mission with the goal of bringing the vibrant
bazaars of India online, focusing on serving consumers in tier 2 and
tier 3 cities.
The vision accompanying this mission is to become the largest and most
customer-centric e-commerce company in India.
ShopClues - Name, Tagline, and Logo
The ShopClues logo represents the two strongholds of the brand ‐ comprehensiveness and trust, while bringing a contemporary, simpler, and stronger vibe to the brand. It perpetuates our image as the most accessible online shopping partner for the real India.
ShopClues - Business Model
ShopClues is an online business-to-consumer marketplace that gives shopkeepers, retailers, and small companies a venue to offer their goods to a wide range of online customers. The platform earns income from successful transactions by charging a small selling service fee, which incentivizes sellers by eliminating the need for upfront setup costs.
Company sets itself apart with an intuitive platform that provides email and hotline service for vendors. To help its merchants, the organization makes use of cutting-edge technology, marketing know-how, and analytics that facilitate decision-making. Strict merchant approval procedures guarantee the legitimacy of the products, and buyer protection initiatives like the ShopClues Surety Program make buying easier and encourage recurring business.
Rishabh Rathi
ShopClues - Revenue Model
Some of the prominent revenue sources of ShopClues are:
Commission Fees: It is the main source of income. Each transaction made through the ShopClues website results in a commission charge being paid by the sellers.
Merchant Listing Fees: Sellers who wish to feature their products on the platform are charged listing fees.
Advertising and Promotion: ShopClues also makes money by advertising, earning extra money in the process.
ShopClues - Challenges Faced
A year on, Sandeep was talking about profitability for the startup. “ShopClues has earned gross revenue of Rs 12 crore since its inception. We are targeting Rs 100 crore by December 2012 and a GMV of $1 billion by 2016. We also feel that we would be the first Indian e-commerce company to reach profitability. By Q4 2012, we will be fully profitable,” Sandeep said.
But in 2013, ShopClues suffered a big blow as CEO Sandeep Aggarwal was arrested by the FBI in San Jose in relation to an insider trading case in his previous job. The company’s responsibilities came down to Sanjay Sethi, who took over as CEO.
While Aggarwal returned to India in 2014, over the next few months, he was asked to step away from his duties, and he was allegedly sidelined by the other co-founders.
Despite the healthy funding track record, ShopClues had steadily lost momentum by 2017 and 2018, as orders dried up and dropped to under 30K per day.
Further, in July 2019, the company laid off nearly 150–200 employees. The majority of the layoffs were said to be in the operations team.
ShopClues - Funding and Investors
ShopClues has raised a total of $257 million in funding over 12 rounds.
Here are the funding details:
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| Sep 19, 2019 | Venture Round | Rs 8 crore | CluesNetwork |
| Aug 10, 2018 | Venture Round | $ 16 million | - |
| Feb 20, 2018 | Venture Round | $1 million | Unilazer Ventures |
| Dec 31, 2017 | Series E | - | - |
| May 9, 2017 | Debt Financing | $ 7.7 million | InnoVen Capital |
| Jan 12, 2016 | Series E | $100 million | GIC |
| Jan 19, 2015 | Series D | $100 million | Tiger Global Management |
| May 1, 2014 | Series C | $15 million | Helion Venture Partners, Nexus Venture Partners |
| Mar 19, 2013 | Series B | $10 million | Helion Venture Partners, Nexus Venture Partners |
| Jan 1, 2012 | Series A | $4 million | - |
ShopClues - Mergers and Acquisitions
ShopClues acquired Momoe on July 15, 2016 for around $10–$12 million. Momoe is a Bengaluru-based startup focused on mobile payments' systems.
ShopClues - Growth
From its humble beginnings in 2011, ShopClues has evolved into a major player in the Indian e-commerce landscape, carving a distinct niche for itself. Boasting a whopping 100 million visits annually and a seller base exceeding 5 lakh, ShopClues has witnessed phenomenal growth as of 2016.
ShopClues' ascent is not merely marked by numbers; it is a testament to its role as the ultimate platform for small sellers across India. The platform's extensive marketplace reaches 32,500 pin codes, facilitating the delivery of products far and wide. With 100 million monthly visits, a network of over 6 lakh merchants, an impressive 8.5 crore+ SKUs, and a staggering 50,000 crore+ worth of listed merchandise, ShopClues stands as a thriving hub for the exhibition and sale of diverse products.
This growth trajectory demonstrates ShopClues' dedication to offering small merchants a strong platform and emphasizes the company's noteworthy influence on the Indian e-commerce business.
Financials
| ShopClues Financials | FY20 | FY21 | FY22 |
|---|---|---|---|
| Operating Revenue | Rs 89.1 crore | Rs 115.1 crore | Rs 59.9 crore |
| Total Expenses | Rs 148.7 crore | Rs 174.3 crore | Rs 111.7 crore |
| Profit/Loss | Loss of Rs 51.5 crore | Loss of Rs 58.1 crore | Loss of Rs 50.2crore |
| Cash from Ops | Deficit of Rs 27.4 crore | Deficit of Rs 28.3 crore | Deficit of Rs 26.6 crore |
Expenses Breakdown
| ShopClues Expenses Breakdown | FY21 | FY22 |
|---|---|---|
| Transportation Costs | Rs 49.4 crore | Rs 30.7 crore |
| Employee Benefits | Rs 62.8 crore | Rs 27.6 crore |
| Advertising Promotional | Rs 41.3 crore | Rs 24.8 crore |
| Others | Rs 20.8 crore | Rs 28.6 crore |
EBITDA
| ShopClues FY21-FY22 | FY21 | FY22 |
|---|---|---|
| EBITDA Margin | -45.44% | -72.03% |
| Expense/Rs of Op Revenue | Rs 1.51 | Rs 1.86 |
| ROCE | - | - |
ShopClues - Advertisements and Social Media Campaigns
ShopClues Campaign
ShopClues has launched a great campaign named 'Mall Nahi Market.' Their goal is to transform online shopping into an enjoyable experience akin to going shopping. In the advertisement, a contented consumer finds deals, much like we might at a real market. ShopClues guarantees a wide selection and affordable rates. It resembles an online marketplace where customers may browse and take advantage of deals.
ShopClues - Awards and Achievements
ShopClues won several awards; below are the details:
2016:
- Gold Award at APAC Effie Awards for Ghar Wapsi campaign (David vs. Goliath category).
- Marketing Campaign of the Year at CMO Asia Awards.
- Award for Consumer Insight at CMO Asia Awards.
- Bronze winner in Film 12B Retail Advertising category for Ghar Wapsi Sale – Bhains Ki Aankh campaign at Abby Awards.
- Award in Search Marketing at 6th India Digital Awards function.
2015:
- Silver at Effie India Awards for Ghar Wapsi Campaign.
- Advertising Campaign of the Year by Indian e-retail Awards for TVC, From Ding to Dong.
- Coolest Start-Up in India by Business Today.
- Interactive – Remarketing and Retargeting at DMA Asia ECHO Awards.
2013:
- Featured in Red Herring Asia Top 100 Winners List.
- Best e-Commerce Site of the Year award by Global Youth Marketing Format Social Media Summit and Awards.
- 'Best e-Retailer of the Year – Value for Deals' title by Franchise India at 2nd National Indian e-Retail Awards.
ShopClues - Competitors
The top competitors of ShopClues are:
Rishabh Rathi
ShopClues - Future Plans
ShopClues is gearing up to introduce renowned international brands to the Indian market.
Gambhir, the Managing Director and Board member of ShopClues, stated, "Our rebranding exercise will unfold over the next 10 months." He added that ShopClues currently fulfills approximately 1,000 cross-border orders daily, facilitated through Qxpress, the logistics arm of Qoo10. Gambhir also mentioned that ShopClues aims to scale this number to around 12,000 orders by 2024", as reported on September 23, 2023.
FAQs
Is ShopClues an Indian company?
Yes, ShopClues is an India-based company that provides a managed marketplace connecting buyers and sellers online.
Where is ShopClues head office?
ShopClues head office is in Gurgaon, Haryana, India.
Who is the CEO of ShopClues?
Sanjay Sethi is the CEO of ShopClues.
How does ShopClues earn money?
ShopClues is a business-to-consumer shopping platform. They earn money on the service fee for every successful transaction.
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