Indian online marketplace, Shopclues is looking to apply for public share listing at Nasdaq by September 2017. Earlier, the plan was to reach GMV of $2.5 billion before filing for share listing. But owing to demonetisation, the etailer has set the sales target of $2 billion for the year 2017.
“With last investment round in January, ShopClues is valued at around Rs 7,100 crore. We were earlier expecting gross merchandise volume of USD 2.3-2.5 billion in 2017 but due to demonetisation, we expect our topline to be around USD 2 billion,” disclosed ShopClues’ CEO and co-founder Sanjay Sethi.
ShopClues entered the elite billion dollar Unicorn club early this year, after being overshadowed by the biggies Flipkart, Amazon and Snapdeal for long. Since then, the underdog of the Indian ecommerce industry has emerged as one of the top players that can replace Snapdeal on the leader-board any day.
Shopclues reaches out to sellers to enable cashless transactions
Besides revising its GMV figure ahead of the Nasdaq listing because of demonetisation, the etailer has also launched a payments service for vendors.
Shopclues started a digital payments service ‘Reach’ as part of its Business Edge Initiative designed for vendors. The service will enable sellers to carry out cashless transactions and accept digital payments without the need of downloading an app or e-wallet.
It is available to both, online sellers listed on Shopclues and brick-and-mortar offline vendors. Priced at Rs. 99 per month with 0% TDR at present, the SMS-based service follows a 3-step payment format.
“In the wake of the unprecedented demand for digital payments, the launch of ‘Reach’ will most essentially offer a level playing field to the brick-and-mortar retailers across the country, who at present, are bearing the brunt due to unavailability of PoS machines at their store. The initiative, further, has laid a very strong foundation for our retailers to enhance their business operations and will imperatively enable them to realize their true potential by reaping maximum benefits of the technology,” said Sethi.
Shopclues’ ‘Reach’ will also help sellers in:
centralized inventory status for multiple stores
merchant store promotion
To focus on alternate sources of revenue
Just like ecommerce biggies Flipkart, Amazon and Snapdeal, Gurgaon-based Shopclues too is looking to create profitable alternate sources of revenue. The online marketplace wants to increase the revenue earned from its seller support services like paid product listings, payments services and business services.
For instance, Shopclues’ plan was to launch ‘Reach’ in March 2017, but it was preponed to cash in on the demonetisation drive.
“Seller services currently contribute about 10% of our total revenues, and most of that revenue comes from our traffic monetization engine AdZone. I see this as a 30% business where about 20% will continue to come from traffic monetization and 10% all other services.”