Disruptive marketing e-Commerce web-portal ShopClues has received Rs. 54 Crores (US$ 10 Million) from existing investor Nexus Partners as well as Helion Venture Partners. The company founded by four individuals, including former Wall Street Analysts Sandeep Agarwal has a rather different approach to the e-Commerce segment, “We do not pay Sales Tax, rather we pay Service Tax as ShopClues is not a retailer and does not buy from manufacturers as we are the facilitator and not the retailer,” said Sandeep.
In simple terms, the site is not an intermediary. Instead it strives to open up an interesting platform for merchants to showcase & sell their merchandise. For customers, it is supposed to be a ‘great & fun’ place to discover products that they could find interesting & then procure them with lucrative discount coupons.
A mere 2 year old startup, ShopClues has been growing significantly & the investment is merely an act of faith exhibited in the company shared Sandeep, “The investment by these investors is a reflection of the confidence in the business model that has already demonstrated a robust growth in the past 15 months.”
The founder has ample proof to prove the mettle of the business. In mere 15 months the web-business crossed Rs. 10 Crores (US$ 1.85 Million) turnover per month. The company follows a simple motto of ‘Empowering thousand of merchants across India to sell online using its platform by connecting these merchants with the actual buyers’
The company has so far received a total of Rs. 81 Crores (US$ 15 Million) via multiple rounds of funding varying from Rs. 20 Crores (US$ 4 Million) to Rs. 54 Corers (US$ 10 Million) & it is envisaged that ShopClues will amass sales exceeding Rs. 120 Crores (US$ 22 Million) within this fiscal year. With an estimated 10 Million Small & Medium Business in India looking to sell for a living there is certainly ample scope of growth for the company. What do you think?