Shopclues is having a good season this year. The etailer has been focusing on its sellers and this move is working quite nicely for it so far. Like many, Shopclues is also aiming to achieve profitability as soon as possible and to do so it is taking the time to develop its marketplace. It feels its sellers are the way to profitability. More merchants bring more variety in terms of products and prices, the Gurgaon based company believes.
The ecommerce company has already started enhancing its support system for merchants. Shopclues acquired two startups for this, says a person aware of this development at the company. These acquisitions took place during the second quarter this year.
The names of these startups could not be obtained by sources however, the source aware of this matter states, “One startup has been acquired and integrated, while the other is more of an acqui-hire.”
The online retail platform claims it has more than 5 lakh vendors on board. This makes it the marketplace with the largest seller aggregation in the country. As a result, the etailer has 5 crore plus listed products and approximately 100 million monthly visits.
To offer these merchants adequate support Shopclues has a team of 80 people. Another team manages merchant operations and around 50 persons are assigned the task of providing valuable technical support to sellers.
The Co-founder and Chief Executive of Shopclues, Snajay Sethi had earlier mentioned that his company is developing different services to assist half a million sellers in small and micro businesses. The purpose behind this was to get one-third revenue within 18-24 months from outside sales on the marketplace.
The ideal picks for Shopclues are tech and capability firms. According to Sethi, the company looks at investing in small niche technology companies like those specialising in data science and analytics. But to enhance market reach and enhance categories, the online retail platform will depend on larger acquisition.
The online retail business bought Momoe, its first acquisition, in July. The firm’s mobile payment app lets users easily pay offline merchants like grocery stores, pharmacies, spas and saloons and even restaurants, through different non-cash methods.
Shopclues has also invested in HeyBiz, a chat app. This Delhi based tech company runs the app and allows real-time chats between companies and their audiences.
The online marketplace is trying its best to catch up with competition. It’s making all the right moves and its sales and merchant numbers keep rising. It building its payments facilities, its fashion category and its merchant support. But the question still remains, does the etailer have what it takes to make it into the big leagues?