All the bad press about former ShopClues CEO Sandeep Aggarwal hasn’t stopped ShopClues when it comes to growth, according to new CEO Sanjay Sethi. Sethi said in an interview with NextBigWhat, that the negative fallout from six months ago hasn’t impacted ShopClues at all from an operational perspective.
Sandeep Aggarwal was arrested and charged in the US for being involved in insider trading during his days as a Wall Street Analyst. He pleaded guilty and faces a prison sentence. One could imagine that this would be a tremendous setback for his company which has been doing rather well since its inception in 2011. It has moved fast and has become a notable name among eCommerce marketplaces in the country. As soon as Sandeep was arrested, the company announced that co-founder Sanjay Sethi would take over the helm as CEO.
Sanjay says that after this setback, ShopClues became even more stronger because the company recouped around its new order and managed to stay focused on its goals. As a result, the company has achieved its profitability goals 3 months in advance. While they are profitable at a gross level, they have to still achieve operating profitability. It hopes to be cash flow positive by 2016. From a growth perspective, ShopClues is doing rather well. It has now signed on 31,000 merchants across India and sold more than 3 million units in the last calendar year. Sethi also disclosed that ShopClues will be reaching Rs. 350 crore in gross merchandise sales this year.
As far as funding is concerned, the company seems to be stable and well capitalized. It currently has 450 employees. As far as sales trends go, 65% of ShopClues’ sales come from a non electronics category and 75% of the business comes from 3rd party brands. One third of the business comes in from tier 3 cities, which shows how much eCommerce as a concept has grown in the country.
It is refreshing to see that ShopClues is doing well and is continuing to pursue its goals even though they have had to deal with a major setback last year.