EXCLUSIVE: ShopClues set to join Unicorn club, secures over $100M Series E round

Update: ShopClues has confirmed the fund raise. It did not disclose the amount of capital raised. Singapore-based GIC led the investment, which values the company at over $1.1 billion.

Gurgaon-based ShopClues has raised over $100 million in Series E round led by a Singapore-based fund, according to two YourStory sources familiar with the deal discussions. Existing investors also participated in the round.The sources also confirmed that the Tiger Global-backed venture is valued at approximately $1 billion.

YourStory’s emails to ShopClues and Tiger Global did not elicit any response.

After Flipkart, Snapdeal and Paytm, ShopClues will be the fourth homegrown Unicorn from the e-commerce sector. The company also expects to hit $1 billion in Gross Merchandise Value (GMV) by the end of this financial year. According to the sources, ShopClues will announce this round soon. “The round is in range of $100 million,” confirmed both the persons, who spoke on condition of anonymity.

ShopClues had raised $100 million in Series D round led by Tiger last January. Importantly, the company’s valuation has almost tripled in this round. ShopClues was valued around $350 million in the last financing round. Its other investors include Helion Venture Partners and Nexus Venture Partners.

According to company filings with the Ministry of Corporate Affairs, the company’s revenue stood at Rs 79 crore in the last fiscal year compared to about Rs 31 crore in FY 2014. Its losses increased to Rs 100 crore from Rs 38 crore during the same period.

Launched in 2011 by Sandeep Aggarwal, Radhika Aggarwal and Sanjay Sethi, ShopClues claims to be the first company to evangelise the ‘managed marketplace model’ in India. Currently, it has over one lakh sellers on its platform.

Unlike other marketplaces, which tend to focus on mobile, electronics, computers and branded fashion, ShopClues focuses on unstructured categories that contribute to two-thirds of its revenues. Last year, Paytm had raised $500 million from Alibaba, while Snapdeal attracted $500 million led By Alibaba and Foxconn.

YourStory take

Entering the Unicorn Club is no small feat, especially for a horizontal e-commerce firm when giants like Flipkart, Snapdeal and Amazon rule the market. Like Paytm, ShopClues too is establishing its niche within the large online retail industry. By focusing on a long tail of products, ranging from havankund with cow dung cakes to under-Rs 5,000 televisions, ShopClues has ensured it remained competitive. This round will help ShopClues to strengthen and maintain its leadership status in such unstructured categories where it fiercely competes with Alibaba-funded Paytm and Snapdeal.